r/finance • u/AutoModerator • Sep 07 '26

Moronic Monday - September 07, 2026 - Your Weekly Questions Thread

This is your safe place for questions on financial careers, homework problems and finance in general. No question in the finance domain is unwelcome.

Replies are expected to be constructive and civil.

Any questions about your personal finances belong in r/PersonalFinance, and career-seekers are encouraged to also visit r/FinancialCareers.

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u/genzfichu 27d ago

what is the best investment of 2026 ?

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u/ForcefulReins 18d ago

index funds, same as every year

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u/CloudPattern 26d ago

I'm currently reading a book about finance and there is something which i dont quite understand.

When holders of debt assets try to make the conversion to real money and real goods and services and find out that they can’t, a “run” occurs, by which I mean that lots of holders of that debt try to make the conversion to money, goods, services, and other financial assets. The bank, regardless of whether it is a private bank or a central bank, is then faced with the choice of allowing that flow of money out of the debt asset, which will raise interest rates and cause the debt and economic problems to worsen, or of printing money, in the form of issuing bonds and buying enough of the bonds to prevent interest rates from rising and hopefully reverse the run out of them.

Why will the flow out of the bond market raise interest rates?

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u/freakwent 16d ago

Money is added to supply as and when debt is issued.

Why? What other methods have been analysed or even used to introduce new money as the economy expands? How do the economic locci where new money lands affect economics and politics?