I finally watched "The Big Short" last night. What a great movie. Do you think this will be 2008 times 1,000?
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I finally watched "The Big Short" last night. What a great movie. Do you think this will be 2008 times 1,000?
1/ Different matters completely. 2008 was caused by collateral (mainly MBS) being promoted akin to Treasuries. They werent so failed as collateral. This caused a bank run but banks trying to be made whole on their collatera.
2/ This time around we know what the collateral is but are having a liquidity crisis. Since 2008, there hasnt been enough money out there (balance sheet constraint). This is causing major problems and bank failures.
3/ The idea that this is going to be worse than 2008 by orders of magnitude is laughable. That is more online nonsense spewed by people who are either click baiting or have no clue what they are talking about.
4/ The bank crisis is not over; others are going to fail. It is a bump in the road though. The major event will be sovereign debt crisis and that is likely to come later this decade. That is what people need to worry about.
5/ The solution to what is taking place now is more liquidity. With a sov debt crisis, there is no solution. Developing countries are going to get wiped out hard as the USD likely explodes.
I don't know? You've got guys like Nouriel Roubini saying we're at the beginning of maybe a decade of stagflation that will likely end in a debt jubilee or "Great Reset" because of an entire world drowning in debt.