"(This means a market panic far larger than the Panic of 2008.
Today, systemic risk is more dangerous than ever because the entire system is larger than before. Due to central bank intervention, total global debt has increased by about $150 trillion over the past 15 years. Too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books.
Each credit and liquidity crisis starts out differently and ends up the same. Each crisis begins with distress in a particular over borrowed sector and then spreads from sector to sector until the whole world is screaming, “I want my money back!”
) "
Soon the contagion spreads to all banks and assets, as everyone wants their money back all at once. Banks begin to fail, panic spreads and finally central banks step in to separate winners and losers and re-liquefy the system for the benefit of the winners.
Typically, small investors (and some bankrupt banks) get hurt the worst while the big banks get bailed out and live to fight another day.
) "
https://www.zerohedge.com/news/2019-01-10/heres-where-next-crisis-starts
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