Part 10/13:
- Potential for a Feedback Loop: Should the government increase borrowing drastically, inflationary pressures could intensify, undermining the stability of the financial system and eroding savings and purchasing power for ordinary Americans.
The Future Outlook: Walking a Tightrope
The Biden administration and regulatory bodies face a delicate balancing act. Easing banking restrictions might provide temporary relief for the government and help stave off economic downturns, but it risks repeating the mistakes that led to the 2008 crisis. The "new" bailout—this time executed by private banks—could set the stage for a volatile environment where risk is increasingly shifted from the public to the financial sector.