It's Deja Vu (All Over Again)

 Very short post today.

The gut feeling I get from all markets these days is that I've seen it all before, specifically during 2007-08.

Back then the Debt Crisis started slowly at the very edge of the risk/credit/real estate spectrum, ie subprime loans for speculative type properties.  Some mortgage brokers started going under, then specialist mortgage lenders (remember Countrywide?) and - finally - the doodoo hit the fan all at once: venerable investment banks who had bought and securitized loans and derivatives went bankrupt or were bought/bailed out for peanuts, seemingly overnight. The Fed saved the day by providing massive liquidity in amounts that looked immense - back then.

Today, the "edge" of the credit/risk spectrum is in cryptos and their associated exchanges and lenders.  They are now going under leaving behind losses in the billions.  Since the financial system is highly interconnected, however, I'm waiting for the next domino to fall, and it won't necessarily involve cryptos.

Once the Risk switch is turned to the OFF position all manner of critters are going to be rushing for the exit doors.