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comment by mk
mk  ·  1696 days ago  ·  link  ·    ·  parent  ·  post: The Coronavirus Is Exposing Wall Street’s Reckless Gamble on Bad Debt

Yeah. It seems like the Fed is going to print cash endlessly. They are now buying this debt. It seems the stock market is a Fed thing now. I have no interest in taking bets either way anymore. It doesn't feel like investing.





b_b  ·  1696 days ago  ·  link  ·  

I guess the central lesson from 2008 was "don't let the stock market crash." When you couple that to the president's inability to deconvolve "stock market" from "economy" it's a pretty toxic mix.

The thing about CDOs that was entirely missed in 08 was that the risk is highly correlated, which completely undercut the argument that they weren't risky since a lone (no pun intended) default or two is diluted by the large number of loans represented in any given security. I can't, so far, figure out how CLOs are any different.