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The Silent Disaster Behind the 2008 Crash - Jeff Snider, Eurodollar University, DSPod #293

The DemystifySci Podcast

CHAPTER

The Banking Crisis: Understanding Lending Reluctance

This chapter explores the hesitance of banks to lend during financial crises, driven by perceived risks and information asymmetry, leading to increased interest rates. It delves into the complexities of the 2008 financial crisis, highlighting systemic failures in accounting practices and market liquidity, which catalyzed distrust among financial institutions. The discussion underscores the disconnect between market prices and true economic value, ultimately illustrating the need for a fundamental rethink of banking practices and regulations.

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