The 2008 Financial Crisis Questions

[llyran-noble]

1: What is credit?

2: Is it ever necessary or wise for a government to create money without creating value to match?

3: Is the housing/ real estate market as stable as is commonly believed, and if so, is it a false stability?

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Comments

[doziekash]

Is it ever necessary or wise for a government to create money without creating value to match?

If A currency has no value, then it is not actually regarded as money. What makes Dollar bills for instance, different from a mere piece of paper is the value attached to the dollar bills.

Therefore to answer your question, i believe every government must endeavor to create and add value to whatever currency they create or impose.

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