Everything old is new again. Toxic real estate bad/overleveraged loans The Trillion-Dollar Borrowing Binge Lifting the Stock Market to Risky Heights - WSJ Back in the day - very late 1920s, Florida real estate was the big play - buy on speculation, filp the property and make big bucks. Take those big bucks and buy stocks - on margin. You got more that way, eh? Then That FlL property turns to to be swamp, and tyou can't find another sucker will to let you flip it. The loan defaults cause you can't stay current. Defaulting RE loaned make banks nervous, so they make margin call, and you can't sell the stock to cover your margin..... Everything old is new again. This might be a fun read - Failed Bank List | FDIC.gov
The bigger problem that is much larger is private equity firms. In 2025 54% of all US corporate bankruptcies were private equity firms that had a major role in these corporate bankruptcies . The amount of over leverage these firms hold make the banking failures(as serious as they are) pale in comparison.
