Is it currently possible to draw parallels with the 2008 financial crisis by equating the sharp fall in the bond market and the associated losses incurred by the banks, some of which have to be realized, and the accompanying loss of confidence on the part of customers and investors, with the mortgage bonds that burst at that time?
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@EnjoyCapitalism Tomorrow. I think that's the golden question, where you currently don't have a right or wrong answer. What we realize is that the monetization of banks, above a certain interest rate level, becomes very challenging. And as was the case with the mortgage loans, now the regulators have to find a way to keep the banking sector stable. Because if a big bank goes under, then you have very quickly liquidity problems with their customer (be it private or corporate) and this would have of course economically seen very severe consequences. But that's why the Fed & Finma have now intervened respectively (and with CS this should have happened years ago, only that their main investors and the regulator didn't want it). But what you have to say is that news/rumors/fears spread much faster through social media than back in 2008.
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•@TheRealRapha will be exciting in any case, especially when you consider that a bank bailout is only possible with massive monetary support, which means that the fight against inflation is at risk. Add to that the threat of recession. The central banks are currently in a quandary.
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