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 i

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.)