The point is though there's never been another LTCM in nearly a quarter of a century. LTCM was one of the first major fixed income arbitrage funds, a strategy that's uniquely sensitive to cheap leverage.

They were able to exploit their prime brokers to give them tons of leverage at essentially zero costs. Since LTCM was one of the first, the banks didn't really know how to model their counterparty risk and they were dazzled by the prestige. Since that occurred there's been a ton more hedge funds, and banks have way better systems for managing that level of counterparty exposure. Plus the post-GFC regulations severely limit bank leverage anyway, so they couldn't give cheap leverage to their hedge fund clients even if they wanted to.

Again that's why we've never seen another LTCM in nearly a quarter of a century. Pointing to LTCM as an example of risk in the financial system of 2021 would be like pointing to Chernobyl as an example of risks in modern nuclear reactors.