Not sure what exposure people had during the 2008 crash. I remember watching RBS stock plummeting daily. And in the US Lehman Brothers went under.
A good film Iād recommend watching is Too Big to Fail. Tells the story of how the US banking sector went into meltdown.
I didnāt invest at the time, but The Big Short is one of my favourite books.
Inside job by Matt Daemon.
My question is could the 2008 happen again or are there things in place to stop this?
2008 wonāt happen again, in so far as the next crash / correction will likely be caused by different things.
āHistory doesnāt repeat itself, but it rhymesā - Mark Twain.
So thereās things in place that will stop the same thing happening again.?
Absolutely market crashes are semi regular events. Youāll likely not know the problem until you do, at which point itāll likely be too late to do anything about it.
The reason 2008 was so bad is the bank themselves couldnāt preform their basic function of lending money. The next scandal or crash could be tomorrow or it could be a generation away. A diverse portfolio invested over many years is your best armour.
I think ānarrated by Matt Damonā is more accurate! Itās a fantastic documentary though.
Weāll no doubt see another big crash in the future, but how it manifests itself is another question. Highly unlikely itāll be a carbon copy of 2008, but one not-too-unrealistic scenario is if we have a multi-year crypto bull market, where all traditional finance institutions get involved using huge leverage, then we see a 50% drawdown in a single day (which has happened multiple times), it could have extremely dire consequences on all asset classes.