Someone out there is dead and today the Fed came to the rescue with USD 1.5tln in repo funding. LTCM happened 10y before I first traded in markets, but from what I read, charts I looked at, etc, it is what it seems to be happening to say the least.
Below are charts of implied vols for currencies and USD rates.
FX Vol now way-beyond normalized.
USD Rates 1m10y normalized vols.