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the reporting on stress testing (that i've seen, at least) implies that added rules like further limiting bank capitalization fall woefully short of preventing
by clairity 6y ago
the reporting on stress testing (that i've seen, at least) implies that added rules like further limiting bank capitalization fall woefully short of preventing another contagion from spreading.
i'm down for letting banks rise and fall on their own merits, but we've not had that since before the 80's at least.
- dcolkitt 6y agoWe just went through the deepest, fastest recession since the 19th century. And not a single major financial institution failed or even needed a bailout. That's pretty firm evidence that banks are more than adequately capitalized. People want to see everything through the lens of 2008, but the difference between banks then and now is night and day.
- clairity 6y agothe circumstances are drastically different, so adequate capitalization is unlikely the reason for that. this was a induced recession from outside forces, not from internally correlated ones like 2008.