Credit Suisse’s fail already made investors loose $ 17 B and counting.
Other banks’ shares and bonds are being affected. It seems it won’t stop here.
It was to be expected that the unfolding of QE and years of negative interest rates would harm the financial system and the economy as a whole.
Are regulators going to step in and prevent governments from overspending? And more fundamentally prevent central banks from applying loose monetary policies for too long?
Of course not, even though these were the root cause of the mess we are in today. It is more politically palatable to keep the illusion of enforcing more regulation on the private sector even though it proves time and again that it does not work.
When will governments and the public understand that sound money is a prerequisite for the economy to develop and prosper?