The bankers are being squeezed, yes, but securitization has changed the game. The balancing act is to bring down risk behavior without toppling the whole house of cards. In other words, lower the plateau while maintaining confidence.
Problem is the outcome has essentially become binary. Kind of like dot.com except on a much grander scale because of the debt involved.
Looking to be more and more impossible and the market is pricing that in day by day.
The greatest bubble known to man results in a soft-landing? Hard to believe, but still a possibility, regardless the risk/reward has changed in favor of different asset classes.
The bears have known this for a while, the problem is as usual, they underestimate the power of the Fed, business cycle, and credit.
It was good to make money on the way up. If one doesn't lose it on the way down, and in fact makes some or even breaks-even through shorts, gold, whatever, then one has indeed become richer for it through a massive increase in purchasing power. |
