I don’t know if it is worse than the Great Depression, but it would definitely be worse if there was not FDIC. FDIC prevented a panic. Everything that is happening now is totally rational.
A bank loses money for the quarter and the forecast is loses for rest of the year if not more, so its stock goes down. Don’t have the money for loan payment, so the loan is denied. Nobody can buy an over priced mcmansion, so the price goes down.
