Institutional trust has been cracking since 2008 because governments in developed markets no longer maintain the economic discipline and adherence to norms that characterized the post-WWII order, evidenced by massive COVID bailouts and cavalier policy actions that would have been unthinkable 30-50 years ago.
causalpending
Speaker
Aswath DamodaranEvidence Quote
“Institutional trust has been cracking since 2008. We no longer trust institutions whether they be central banks, governments, any institution the way we used to. And that's not a good place for financial markets to be when you lose trust in the institutions that are supposed to keep your currency afloat.”
Source
Aswath Damodaran: I Am More Cautious Than Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
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