I get that, on paper. Most of the risks shouldn't be correlated in a systemic way, though? If a local plumber goes up on their loan, why would that mean a loc

I get that, on paper. Most of the risks shouldn't be correlated in a systemic way, though? If a local plumber goes up on their loan, why would that mean a local construction company is going down? If you over lend, sure, but otherwise? One going down should be somewhat shiftable to another. Unless you are lending to people that have absolutely no assets that can be liquidated? But, that just seems to say that we only lend on leveraged value nowadays? That is a depressing thought. And again, any systemic risk to a town seems to still exist. Just now there is nothing keeping money made on interest in the town. Literally all profits from localities are shifted out to wherever the bank is located.