Reverse Bank Panic
I thought this was a priceless way of looking at things...
This is about how leverage is unwinding and banks are concerned and trying to raise interest rates and increase security demands, or essentially, they are reducing the level of margin they are allowing.
"He likens the crisis to a bank panic turned upside down with bankers, not depositors, concerned they won't get their money back. "
So, instead of consumers being involved in a bank run, it is like the banks are involved in a bank run on their clients.
Given that when I was thinking about how this thing was going to unwind I figured the banks were toast and on the hook for loans that couldn't be repaid, it is amazing that it has taken them this long to figure it out.
I am so glad I was telling all my friend to dump their bank stocks last year and that most listened.