>Why didn't banks liquidate their long-term bond holdings a year ago? Because if they had all done it then, the crisis would have happened at that time instead

>Why didn't banks liquidate their long-term bond holdings a year ago? Because if they had all done it then, the crisis would have happened at that time instead of this one. For any mass-liquidation, you can always ask, "well why didn't you beat the rest of the market to dumping this trash?" It's a problem in any bubble.