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Josh Blumenthal's avatar

I don't think it is uncommon that actions we take to avoid a short-term loss come back to haunt us and so it is in this case. Pretending, in 2009, the losses in value were not real because they had not been realized led us to this happening in 2023. Likewise, bailing out banks once before set a precedent for a bailout of some sort now, though gov may not want to call it that. Protecting deposits over $250k will come back to haunt us at some point, even if only when the gov refuses to do it in some future case and they loses a lawsuit brought on the basis of precedent.

Let's smooth things over as best we can and also prevent responsible individuals from taking responsibility. No banker went to jail as a result of the 2008 crisis, though lots of people lost their homes.

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David Roberts's avatar

I can't think of a specific book. But I can recommend Matt Levine's almost daily writing at Bloomberg. His writing is a pleasure, he has a great sense of humor, and he does a great job of explaining complex financial phenomena.

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