taojaxx

Great Depression Not Imminent, But Inevitable

The reason the CDS market deflates is it was a bubble in the first place. The whole credit enhancement mechanism was relying on institutions the size of AMBAC and MBIA....
AAA ratings have been exposed to what they are: worth every bit of what they cost to investors, i.e. $0, and great value to those paying for them, the borrowers, or sellers of toxic waste repackaged as "AAA".
Left unchecked, this financial Chernobyl could trigger the nuclear winter the author wishes for. The Fed and US/China/others Gov'ts are busy burying it under a concrete blanket.
That short SPY position is 1 year past its sell by date.