elias mazariegos
Member
Does it sound really good?
Well, again, not really. The more money is borrowed, the more capital is owed. In the long term, the credit accumulated in the bank falls on everyone's heads as if a big storm created a financial crisis. This is called the economic macro cycle.
This process is common in all capitalist economies. National banks are continually trying to balance scales by raising and lowering interest rates. It is what is called the micro economic cycle.
These economic cycles are similar to climate change cycles - slow, unstoppable and very dangerous for market participants who can not see when they arrive.
Comunidad
Well, again, not really. The more money is borrowed, the more capital is owed. In the long term, the credit accumulated in the bank falls on everyone's heads as if a big storm created a financial crisis. This is called the economic macro cycle.
This process is common in all capitalist economies. National banks are continually trying to balance scales by raising and lowering interest rates. It is what is called the micro economic cycle.
These economic cycles are similar to climate change cycles - slow, unstoppable and very dangerous for market participants who can not see when they arrive.
Comunidad
