adamnb

Great Depression Not Imminent, But Inevitable

Okay, so what's the way to buy the spread?


On Dec 17 03:37 PM JasonC wrote:

>
> Simply dumb. What covers real risks is spreads, spreads are at epic
> levels, ergo even epic levels of risk can be objectively handled
> now. The silly and dangerous bit was the low spread world we just
> exited --- exiting it has destroyed so much capital taking credit
> risk for a living (which used to be known as "banking", duh) that
> spreads have reacted to the opposite, silly extreme. Someone will
> realize these epic spreads are buys when the narrow ones were sells,
> and be profitable as a banker again. Those who believed that it
> was possible to be a banker at spreads of zero were wrong, those
> who now believe it is impossible to be a banker at spreads of 10%
> over risk free rates are just as wrong.
>
> Both are trend following idiots and not bankers.