RE:Inflection pointYes my friend, a very accurate synopsis of what happened.
Back in 2007/08, the major banks in the US were, on average, leveraged around 30:1 so even the smallest problem would have an outsized impact which is exactly what happened. After Dodd Frank, they were limited to 10:1. However starting a few years ago they starting using various techniques which were technically illegal under Dodd Frank to increase their leverage but the regulators have turned a "blind eye" to this.
The end result is that the ducks are potentially lined up for a 2008 leveraged collapse. Will it actually happen is unclear at this point.
While, despite my negative opinions of Biden and his gang, they are doing the right thing by supporting depositors instead of the banks, BUT they are not addressing the root problem.
Frankly, if the US Government enforced their rules, the Fed could increase interest rates to solve the inflation problem but in the absence of regulation there will be intense pressure for the Fed to slow down the required increases in interest rates and thereby kicking the problem down the road.
We will see what J Powell decides to do shortly.
From an investment point of view, the situation in Canada is totally different and so if this plays out as I expect (and as it did in 2008/09), there will be some great buying opportunities in Canadian banks in the near future. Even today, I played a swing using Canadian Banks to make about 3% in a couple of hours. There may well be more opportunities in the days ahead.