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Re: banking crisis.

I actually agree there won't be a "real" banking crisis, but not for the nonsense reasons Cowen puts forward.

We won't have a "banking" crisis because there is ample historical evidence that the Fed will do anything to preserve the banks. Fed balance sheet expanded from ~$1T to over $8T in the GFC - in this context, the $650B in unrealized investment losses in the banking industry is piddling.

The "we won't call it a" bailout of uninsured depositors is also another piece of evidence. Regardless of the $25B TBTF facility amount - I would bet money that extra zeros can be added if needed.

So no worries on whether your $X in Y bank will be "safe" - you will get $X back.

You just won't be able to buy the same stuff as you used to... As Greenspan himself said: "We can guarantee cash benefits as far out and at whatever size you like ... but we cannot guarantee their purchasing power."

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Me waiting for what kind of innovation AI will bring

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