The reason it doesn't go well with politicians is because, in a massively complex modern economy, the "losers" in an unexpected default are nearly always a wide swath of average citizens and public institutions. Why? Because they are the ones who dump all their savings into "safe" mass market investments like blue chip stocks and corporate debt ETFs.
Yeah, I said "fuck it" when they started buying corp bonds… DeFi only now, and just finished getting an audit for a decentralized derivatives protocol that was seeded funded with a decentralized incubator.
We're planning on the protocol being able to lend liquidity into existence out of thin air (well more accurately, taking advantage of collateral dynamics and protocol stablecoin flows) and packaging that debt into decentralized stablecoins denominated in $…
Thanks to the moral hazards, they've have motivated me and others to pursue alternatives that in their eyes have systemic risk, and I'd agree, very risk to their bailoutistan system :D
