Not much to say about the details, the video is more detailed than I am.
In essence, an economic crisis is a debt crisis. The essence of a debt crisis is an overestimation of credit. Borrowing a lot more money than one’s creditworthiness results in not being able to pay.
The reason for the overestimation of credit is that the borrower is fraudulent. The income of the regulators (rating agencies and even government agencies) is determined by the borrower, the income of the public opinion party (media, academia) is also determined by the borrower, and the income of financial institutions is determined by the borrower. , most of the time is also paid by the borrower (because if the borrower's credit is too low, the lender will not lend money, and the lower the borrower's credit, the higher the commission promised to the financial institution).
And the lenders, mostly civilians, have their own work to do and have no time to study this.
This creates a disparity between lenders and borrowers. It is always easy for the borrower to receive the money, but not be able to pay it back. After this phenomenon appears on a large scale, in order to maintain economic stability, the state will use taxpayer money (or directly print money) to buy those bad debts.
Buying bad debts has basically become a function of the central bank. This ironically means that the fault of untrustworthy borrowers is borne by the common people (taxes or inflation). Inflation will prompt ordinary people to invest (lend money out), and the public opinion circle also educates ordinary people.
Such a financial system went wrong, the borrower took the money and ran away, the company went bankrupt, and he was still a rich man. The entire financial world is commissioned, hired by borrowers, or bribed by borrowers. Only the lenders, civilians, are responsible for all losses. Or wrong to a certain extent, the central bank buys bad debts, and the whole society bears the losses.
This system is built by the country, and everyone who knows something about this system will deeply love this country.
Of course, the world is inherently unfair, maybe you don't think so, that means you have a vested interest. (from "Westworld")
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