In this episode Scott Becker discusses how Warren Buffett and others have famously said “You see who has no clothes on when the tide goes out.”. In other words, you see who is poorly managed when the economy has a downturn and not tailwinds. Here, this is becoming obvious that a lot of banks are poorly managed. I.e. holding excess long term bonds in a rising interest rate environment left them with much smaller balance sheets and much less liquidity.