Keep seeing this same comparison to 2008 repeated and it’s super misleading.
Where is Bear Stearns?
Where is Lehman Brothers?
Where is Fannie Mae + Freddie Mac?
Where is AIG?
Where is RBS?
Y...
this is not 2008 despite a lot of the comparisons because --->2008 was bad loans destroying credit via defaults
this is duration mismatch with illiquid banks that are solvent on a very long timeframe.
banks become insolvent when loans are defaulted but since no one is defaulting it is nowhere near as bad as 2008.
when defaults happen then we are in trouble
this is duration mismatch with illiquid banks that are solvent on a very long timeframe.
banks become insolvent when loans are defaulted but since no one is defaulting it is nowhere near as bad as 2008.
when defaults happen then we are in trouble
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