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Not your older sibling's financial crisis
With banks in trouble, markets are looking to the 2008 Financial Crisis for clues. But, while the previous crisis was driven by a collapse in credit quality, today's banks are in trouble because they didn't believe the Fed could tighten. What a difference a week can make. The market focus has quickly shifted from inflation fighting to shoring up the banking system. Comparisons to the Great Financial Crisis (GFC) in 2008 are aplenty, but most forget that the runup has been completely different this time. The economy of the 2000s looked solid, but was to a large degree based on handing out way too much loans to people ... (full story)