Loading ...In 2006 they went to the likes of Goldman and asked them to write contracts shorting the CMOs–none existed–Goldman thought they were nuts and were glad to collect their premium money for writing the shorts–my question to you is: what would an equivalent situation be today? I would guess that shorting paper–in general–would be the answer–shorting stocks or bonds–but most people would say there are no equivalent excesses as there were in CMOs–It’s hard to imagine any significant downside in paper assets–with zero or negative interest rates, where would the money coming out of stocks and bonds go? “Hard to imagine”…therein lies the opportunity??
Since 1990….maybe even 1982…stocks have used any ole flimsy pretext to rally…although about every 8 yrs they crash…are we near??