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Opinion
John Authers

Move Along, There’s No Crisis to See Here

A hard look at share prices show this is more a moment of dilemma than disaster. And then, there’s that one bank that’s clearly too big to fail. 

The wider banking world is nowhere near 2008, even if one too-big-to-fail institution is actually worth less.

The wider banking world is nowhere near 2008, even if one too-big-to-fail institution is actually worth less.

Photographer: Stefan Wermuth/Bloomberg
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Markets are behaving as though this is already a crisis — or at least some of them are. Bond markets have been turned upside down across the world, with the two-year yield in the US now some 120 basis points lower than a week ago. That betokens a seismic shift in the financial system. In economics, markets have the ability to create their own reality. Within days, they’ve forced the Federal Reserve and the Swiss National Bank to intervene to aid banks. But is it a crisis?