Generally enjoyed this, but I thought it was kind of odd to finger wag at businesses for being “over-leveraged” because a lot of them were in distress after a global pandemic shut down the economy.
A huge exogenous shock with no potential for moral hazard seems like a pretty clear case where a sort of social insurance (i.e. a government bailout) would be the optimal solution.
A huge exogenous shock with no potential for moral hazard seems like a pretty clear case where a sort of social insurance (i.e. a government bailout) would be the optimal solution.