Part 9/11:
The Broader Banking and Economic Ramifications
The current banking crisis, exacerbated by unrealized losses and rising interest rates, has already necessitated government bailouts. However, experts like Alexandra warn that further interest rate hikes could trigger additional shocks, potentially causing more financial institutions to falter. The combination of rising rates, declining vehicle resale values, and overextended auto loans creates a volatile environment where bubbles could burst unexpectedly.