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That’s because the Europeans were smart enough to learn from previous mistakes.I don't know if you noticed, or if you are suffering from amnesia of recent history, but the 2008 collapse was global.
What's more, if you look at the list of banks which failed in 2008, you will not see Lehman Brothers, Bear Stearns, Merrill Lynch, Morgan Stanley, or AIG on that list. Because they weren't banks, and yet they were the primary drivers of the economic collapse.
Complicating things even more where the endless trillions of derivatives on the books of these broker-dealers out there. No one knew what their counterparty risk was any more and so credit froze up, leading to a liquidity crisis.
And this was GLOBAL.
So we aren't even in the same ballpark as 2008.
Some did. President George W. Bush told Congress more than 20 times that they needed to act as Fannie Mae and Freddie Mac got more and more into trouble. But Chris Dodd and Barney Frank, both on the financial services committee pushed for easing of credit to more risky borrowers, denied a housing bubble was being created, kept going on CNN or wherever saying that both were perfectly solid and there was no problem.The 'experts' didn't see 2008 coming until it was already happening. Pardon me if I distrust the 'experts.'
I think that the repeal of Glass Steagall was the clear turning point. That's when the banks went fully out of control, and Lewis' book and movie would never have happened. Those fucked up, unregulated and under-regulated derivatives would never have happened.With every passing year, I find myself more and more in agreement with Michael Lewis that banks should never have gone public.
bank failures this year are greater then even in 2008.Banking issues of the last month, thanks to the Obama regulation, is much, much smaller than 2008.
No one dislikes unregulated out of control derivatives more than me.
The 2008 crisis was primarily driven by the broker-dealers and AIG, not the banks, though banks certainly played a part.
yet i'm reading it's limitations....FDIC is run by the government but funded by insurance premiums paid by the banks.
I think that the repeal of Glass Steagall was the clear turning point.
Those derivatives (and a few other things) literally led to the Meltdown, which literally led to the massive Fed interference, which literally led to the resulting inflation, which literally led to these bank collapses. Every fucking step along the way came from that repeal. A domino effect.
Yet everyone is just acting as though nothing is wrong.
$532 billion in assets for the three banks failed so far, which is more than the $526 billion combined from the 25+ banks that failed in 2008.
The Banking Collapse Of 2023 Is Now Officially Bigger Than The Banking Collapse Of 2008 Was – Investment Watch
www.investmentwatchblog.com
Those asses hurt a lot of people. Warning signs galore. People with families stuck in the middle and they took the hit with the irresponsible. Affecting many for the rest of their lives.Some did. President George W. Bush told Congress more than 20 times that they needed to act as Fannie Mae and Freddie Mac got more and more into trouble. But Chris Dodd and Barney Frank, both on the financial services committee pushed for easing of credit to more risky borrowers, denied a housing bubble was being created, kept going on CNN or wherever saying that both were perfectly solid and there was no problem.
yet i'm reading it's limitations....
To my limited understanding , derivatives along with similar fiscval instruments designed to bet on failure are the problem......
the magnitude of which far exceeds any insurance or quasi government agencies ability to deal with>
Glass Steagal's nearly century old protectants were thrown under the buss , and here we are....
~S~
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This is why the Feds' plan to 'fight inflation' is a complete scam; they're going to print yet another $3-$4 trillion to bail out banks and Wall Street, like they've been doing since the 1960's. Biden's flunkies have already said they are going to pay out claim far greater than the FDIC's $250,000 limit insurance policies call for, to make a lot of billionaires whole. You little people can wait.
i'm a rather simple man Dudley , so i simply subscribe to 'the house never looses' , albeit i can appreciate the details......~S~When AIG failed, a lot of those bets were never paid off. Read The Big Short for some of those who called the collapse but still lost out. Others made billions.
John Paulson - Wikipedia
en.wikipedia.org
5 Top Investors Who Profited From the Global Financial Crisis
These smart investors weren’t scared off by the recession, and it paid off in a big way.www.investopedia.com
the numbers don’t lie. It is largerHoly shit
the numbers don’t lie. It is larger
The owners of the Federal Reserve which is a privately owned bank that orders the U.S. treasury to print money, were stalwarts at the time the Federal Reserve Act was passed in 1913 saying there would be no more recessions and depressions as fiat currencies were so much better than gold and silver backed ones which are called barbarous relics. The Federal Reserve caused the Great Depression by tightening the money supply like a vice in 1929 after greasing the wheels for a decade and causing the Roaring Twenties. Today we have safeguards and levels of social programs that buffer any decline up to now.I think that the repeal of Glass Steagall was the clear turning point. That's when the banks went fully out of control, and Lewis' book and movie would never have happened. Those fucked up, unregulated and under-regulated derivatives would never have happened.
Those derivatives (and a few other things) literally led to the Meltdown, which literally led to the massive Fed interference, which literally led to the resulting inflation, which literally led to these bank collapses. Every fucking step along the way came from that repeal. A domino effect.
Mismanagement of the banks? Bullshit when the government mandates that banks make loans to low income people..No, the blame is squarely on the mismanaged banks.
This happened in the 70s, too. When interest rates rose back then, a lot of banks went under.
It's simple economics. Low interest long term loans will kill you when interest rates go up if you aren't careful. Every time.
Correct, in that that's how they were used in this context. And it gets much worse.To my limited understanding , derivatives along with similar fiscval instruments designed to bet on failure are the problem......
$532 billion in assets > $526 billionYep, if you ignore the losses by Lehman Brothers, Bear Stearns, Merrill Lynch, Morgan Stanley, and AIG from 2008, it is larger.
$532 billion in assets > $526 billion
Math doesn't lie...well...I guess the dembots consider it racist...but it doesn't lie
Some did. President George W. Bush told Congress more than 20 times that they needed to act as Fannie Mae and Freddie Mac got more and more into trouble.
But Chris Dodd and Barney Frank, both on the financial services committee pushed for easing of credit to more risky borrowers, denied a housing bubble was being created, kept going on CNN or wherever saying that both were perfectly solid and there was no problem.
