One thing that seems to amaze me is that these things can actually go on for a very long time. It's like a bubble getting bigger and bigger and still it is holding on and will continue to grow. Even though when the risk is there, they seem to control it very well. That's for now. But I can imagine when this collapses, it will bring everything down for sure.
It is a black swan event. Most banks and financial institutions won't be prepared for this. When it does happen, there will be mayhem.
Who said banks and financial institution weren't prepared?
They have been spending billions of dollar per year lobbying all the politicians, all they need is give a signal and they will get the bail out money.