3 ms·

But the banks were the ones telling us that. How true was it?

• abakker 5y ago
  An interesting read to answer this question would be "Stress Test" by Timothy Geithner. I think the general consensus was that in the moment, all appearances of financial contagion were very real.
• neffy 5y ago
  It was true. The banking system can absorb in a best case losses on its outstanding loans of about 0.75% - that is 0.75% of the total amount of loans. Absent intervention, the consequences of 2008 would have been Great Depression 2. With intervention, we get to deal with a different set of problems (most of which could to be fair about it, be resolved by clamping down on tax avoidance in the financial sector.)
  • steve76 5y ago
    [dead]