Here on Earth, we put mice in a cage and see how often they get shocked before they learn not to reach for the cheese. I wonder if there is some alternate universe where mice shout out “bad bank” and see how many times bankers hit the buy button before realizing there is no such thing. For all the times in the past few years that the “good” bank/”bad” bank concept has been mentioned, not once has it been done successfully. There are just too many competing interests to make it doable on a large scale.
The closest was Bear and that was just the government willing to take on a backstop role, back when we were AAA and not everyone hated bankers quite as much as they do now.
Have a great night. Maybe tomorrow we won’t try and squeeze a full month’s worth of moves into 24 hours, but somehow I suspect we will.