this post was submitted on 05 Feb 2024
10 points (100.0% liked)

Finance

2280 readers
9 users here now

Economic and financial news from around the world, including cryptocurrency and blockchain.


This community's icon was made by Aaron Schneider, under the CC-BY-NC-SA 4.0 license.

founded 2 years ago
MODERATORS
 

Or does the government already do this? If so, can anyone explain like I'm five?

you are viewing a single comment's thread
view the rest of the comments
[–] Zworf@beehaw.org 4 points 9 months ago

They can just not pay them back, defaulting basically.

But then their ratings will go down (a LOT) and basically they will not be able to loan any more, at least not on favourable terms because the market doesn't trust them anymore.