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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: shades who wrote (59326)4/24/2006 11:09:34 PM
From: bond_bubble  Read Replies (3) | Respond to of 110194
 
Shades, I believe the moral hazard is already very high. Look at JPM leveraging more and more on derivatives and CFC advertising more and more toxic loans. I believe, many of these financials are already betting that Fed will bail them out and getting more and more into toxic finance. I dont think they need one more chance (for the Fed to lower interest rate) to pile up more shit. watching these guys, there are many others pursuing this moral hazard path - not to be left out of this shit race. For some reason, you and Chromatic are of the opinion that, there is more leverage in moral hazard to be taken advantage of. I dont. You are of the opinion that the moral hazard is no ticking bomb at this time. You believe BT will survive. So will JPM, CFC etc. Only time will tell if we are at the terminal stage or not....