Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
b_b · 1708 days ago · link · · parent · post: The Coronavirus Is Exposing Wall Street’s Reckless Gamble on Bad Debt
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.