/biz/ - Business & Finance

Hi, I have a rather long and tedious question.

Recently, a mutual savings bank in my country made loans for unprofitable real estate and went bankrupt after failing to recover the loan principal, causing a mid-sized bank run.

Investigations into the matter revealed bribes, and manipulation of the books to reduce delinquency rates.

our government and central bank responded to the crisis with a savvy response: declarations of guarantees of payment of principal and interest, declarations of tax exemptions for new depositors, and loss underwriting...for now.

Those of you here already have memories of 2008, and you know that when the government assumes all losses, it's the same as declaring that it's going to tax, raise prices, print money, etc... and soon it will be everyone's responsibility. It's an outright scam that eats away at society and distorts the economy...