The FTX Saga Confirms One Thing

We were in a bubble and it has popped

Reflecting on 2008 GFC

If there is one thing that really stands out in the 2008 GFC, it is that corporate governance failed at a massive level in the big banks, and that contagion spread to other financial (and to a lesser extent, non-financial) firms that are peripheral to the workings of the financial system. For example, the insurance companies that insures the credit default swaps and the rating companies that failed their due diligence in the pursue of profits.