2008 was a matter of poor balance sheets. It was a matter of assets being inflated in theoretical price, only to realize that their real value was but a fraction. It was about BV’s higher than they should be, and funding that was unavailable.
Today we have more liquidity, better balance sheets and assets being inflated at but a fraction of what they used to.
This is a demand crisis, rooted in fear, through and through.
UPDATE: And as everyone is already pointing out. A destruction of commodity costs and a rising dollar are exactly what the Fed needs to fire up the presses. Let Oil come in below 75, below 70, see what kind of “tax cut” that is. The real QE = cheap gas. A dollar that recoups some of its lost value, a dxy around 80, see how many more dollars are printed into THAT monetary base.
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