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Will new banking rules finally end the property party?
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Check out more on how the financial system works, according to Simon Dixon: https://youtu.be/K7UyP39o4GU?t=730 –
Check out more on the 'Money Creation Theory' of banking: Richard Werner: Sustainability and the financial system Review of literature 2015 | British Actuarial Journal | Cambridge Core: https://www.cambridge.org/core/journals/british-actuarial-journal/article/sustainability-and-the-financial-system-review-of-literature-2015/F2FEE2A2431A1C2903C19896D016665F
Bank lending rules are changing - this isn't a surprise as the process started some time ago. The timing for the implementation isn't so awesome though. Perhaps increasing interest rates could have been a better move. If what we've observed in the last 18 months is genuine growth and not just new money creation, higher interest rates make more sense. Instead, even more restrictions around the creation of new credit in the economy not only poses risks for everyday investors, but it COULD pose risks for the country at large.
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