meh, we have much more stable financial institutions in 2023 than 2008.
In 2023, if Bank A comes to the Fed/FDIC/SEC/Treasury/Congress in the middle of night after a huge margin call, our institutions now have the processes in place to declare different accounting or collateral rules for that specific bank at the stroke of a pen.
"Ok Mr. Dimon, as of midnight tonight, you no longer have to mark all of your shit paper to market. Carry it at the valuation you think is cool, bro"
That's a different definition of "stable" than we had prior to the GFC.
that is the whole point. We had a top-10 bank fail, and you know what? our financial institutions did not cascade into failure.
There WILL always be failures, ups and downs, the question is how it is mitigated.
We have had multiple bank failures this year. And so many banks are holding large amounts of commercial real estate and also long term bonds they can't mark to market without suffering monster losses.
that is the whole point. We had a top-10 bank fail, and you know what? our financial institutions did not cascade into failure.
There WILL always be failures, ups and downs, the question is how it is mitigated.
Privatized profits, socialized losses.