[lemax]

These are relatively contained private credit markets though. We’re not looking at anything 2009 level. For scale, total US mortgage debt peaked at $9.3T ahead of the subprime mortgage crisis, 73% of GDP at the time. We’re talking here about ~5% of GDP.

[StanislavPetrov]

We were around ~$11 trillion in debt in 2009. Now we are ~$40 trillion in debt. The FED balance sheet was less than $1 trillion before the crisis in 2008, now it is around ~$7 trillion. Our debt to GDP ratio was ~64% in 2008 and is now at ~120%. Put simply, our ability to absorb any sort of financial shock by taking on massive amounts of (more) debt (which is what we did in 2008) is not remotely similar to what it was during the last crisis. This would be true even if we weren't in the midst of a highly inflationary environment due largely, but not solely, to the ongoing energy crisis being worsened by the wars in Iran and Ukraine.

https://fred.stlouisfed.org/series/WALCL

https://fred.stlouisfed.org/series/GFDEGDQ188S

[porridgeraisin]

This is the most relevant comment in this thread.