The financial system has turned credit intermediation into a debt mint that produces assets to enrich investors but leaves households, firms, and governments struggling with unsustainable liabilities. The COVID-19 crisis makes reform more urgent than ever.
NEW YORK – What do the Calabrian organized crime syndicate ‘Ndrangheta, Hertz, China’s Sichuan Trust, and the US Federal Reserve have in common? They are all deeply entangled in a financial system that has turned credit intermediation into a debt mint that produces assets to enrich investors but leaves households, firms, and governments struggling with unsustainable liabilities.
NEW YORK – What do the Calabrian organized crime syndicate ‘Ndrangheta, Hertz, China’s Sichuan Trust, and the US Federal Reserve have in common? They are all deeply entangled in a financial system that has turned credit intermediation into a debt mint that produces assets to enrich investors but leaves households, firms, and governments struggling with unsustainable liabilities.