Over levered risk built on cheap money was a huge driver of inflation. They need to let those bets fail to let the money drain out of the system. But they won’t. This would have been a deflationary event.
Fractional reserve is inherently financially unstable. Investing deposits while simultaneously promising to pay them on demand is inherently financially unstable. There’s over 100 years repeatedly demonstrating this. Like clockwork, this exact scenario gets repeatedly demonstrated.