First signs of a collapsing system? I do not hope so.
Further:
https://www.livemint.com/politics/p...ue-package-for-businesses-11585318152230.html
Now how do banks and governments, like in the past crisis and when ever giving credit to others, reduce their risk, as even such organizations do not like to take much risk?
The following is not published much to the public as there is not much of any interest from those organizations to do so.
Credit Default Swap (CDS)
What is a Credit Default Swap (CDS)?
A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap" or offset his or her credit risk with that of another investor. For example, if a lender is worried that a borrower is going to default on a loan, the lender could use a CDS to offset or swap that risk. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults. Most CDS will require an ongoing premium payment to maintain the contract, which is like an insurance policy.
A credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities or corporate bonds.
Following the full source:
https://www.investopedia.com/terms/c/creditdefaultswap.asp
It takes some time to read through, but for each and every one who doe's not know about this, it is more than worth to take the time to do so. Why? It gives an understanding about how governments and banks reduce their risks, but only tell the average Joe how lovely they are by giving credit to each and every body in such crises.
The risk to them is very little as they are protected by law to even insolence little companies when they may not can pay back there loans at the given time defined in the credit given contracts.
The folllowing is from "Ernst Wolff", which is a book writer and journalist on economies. I sadly could not find any books from him written in English.
The final winners of this whole crises will be again the big players in what ever section, as at the end of this crises an other thousand, and thousand of little companies all over the world will have gone and the big players can step in again to even make more business in their own way and will.
Ernst Wolff, born in 1950, grew up in Southeast Asia, went to school in Germany and studied in the USA. He worked in various professions, including as an interpreter and screenwriter. Since the political upheavals of 1968, he has primarily dealt with politics and business. Because of the global financialization brought about by deregulation, he has been concentrating for years on what he sees as the most important area of global society: the financial sector. Wolff lives as a freelance journalist in Berlin, writes regularly on current topics and gives lectures worldwide that shed light on current events against his financial policy background. He is the author of the book "World Power IMF - Chronicle of a Raid" and one of the authors of the book "Facade Democracy and Deep State".
Translated from German to English from this page:
https://www.rubikon.news/autoren/ernst-wolff
Have a nice weekend / DP
