• ryathal
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    9 months ago

    Some banks would fail. The FDIC would likely step in and guarantee 100% of deposits given their last record. Some investors would lose out.

    It wouldn’t be as bad as 2008. The big problem with 2008 was that mortgage backed securities were extremely popular investments and many were used as leverage for additional loans, then turned out to be potentially worthless. Realizing the loss on those securities could have triggered a massive loss across the whole market.