Agree, shaping up to be a wild ride. Hope it is not a repeat of 2008 financial meltdown. I’m betting it’s probably a bad repeat of that 70’s show, perhaps 1979 style stagflation.
Seems like lots of elevated risk put there,e.g. sovereign debt and muni downgrades and defaults, oil, botched Fannie/Freddie reform, etc. Not sure how private industry gonna step in without increasing borrowing costs. Isn’t F&F still funding & backing nearly all mortgages now?
