What’s quickly unraveling shows how little has changed, primarily from a regulatory standpoint. Credit Suisse was deemed an internationally structural bank, on

What’s quickly unraveling shows how little has changed, primarily from a regulatory standpoint. Credit Suisse was deemed an internationally structural bank, one which could threaten global markets. The regulations to avoid further moral hazard called banks of this scale to easily separate their investment business from their retail bank. The theory was a “too big to fail” bank would be broken into the toxic casino side (which would be allowed to go bankrupt) and a healthy deposits business. Did this happen? Of course not! Banks have taken the past 10 years and found even more novel ways to gamble with money. And a decade of zero or near-zero interest rates led to a bubble in even dumber assets, once deemed safer than cash. Now we will live through yet another massive global wealth transfer upward, giving even more power to the banks who cannot lose.