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To add context:

The large banks just destroyed, through intense lobbying, what was called Basel III Endgame - a long-planned, carefully implemented regulatory structure designed to prevent future catastrophes like 2008. The Federal Reserve pretty much openly said they gave into pressure.

The problem with capitulating to make peace is that you don't get peace: The attacker is emboldened and tries for more, and now has precedent and momentum in the eyes of third parties.




Declaring defeat seems a bit much, considering that we haven't had another catastrophe similar to 2008. That seems pretty successful, so far? (The pandemic was bad, but banks mostly didn't collapse.)


But by the same metric, The great recession hadn't happened before 2008 so it would imply that the rules up to 2008 were sound?

With hindsight we know that the rules were far from sound and allowed banks to take on massive risk which they dumped on the taxpayers as usual.


IIRC 2020 was about to be one, then the Fed tripled/quadrupled the money supply.




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