Built in 1997; Scraped in 2007, from Roger Arnold
I have no response that could place this within any kind of rational frame of reference.
Very little of what is occurring in the capital markets today makes sense to me and I understand it less every day. Twenty percent on the SPX in the last seven months…VIX and spreads are at all-time lows…talk of a permanently flat yield curve…infinite capital?
Maybe it really is different this time, no more recessions, no more business cycle, and we all live happily ever after. Except me - I am still here with my tinfoil dunce cap on, waiting for the sky to fall.
Bud Conrad writes:
This is one of the best summaries of the changes in the new Financial Engineered Credit markets I have ever seen laid out. Thanks very much. If you have some sources on the bigger credit picture, such as where are the numbers on percentage of loans from outside the banking system, that would be of great interest.