[quote=Rt.66]davelj
It’s not my statement but hows a bout we change it to:
In many/most cases, either way unprecedented, many forms of debt can no longer be sold as an asset for more than a fraction of the previous determined value of said asset, to the extent that the event is historical?
Happy?
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If you eliminate the first seven words of your statement (“In many/most cases, either way unprecedented”) and just start with “many,” then I would agree with your statement. But that’s a WHOLLY different statement than saying, “Debt can no longer be sold as an asset.” When the equity markets (junior to debt) are at zero, and the Lehman Brothers Bond Indexes are at zero, then debt will truly no longer be anyone’s asset – it’ll be worthless. But so long as equities trade – and they’re trading like mad right now – then clearly folks still believe in debt in the aggregate (for now)… although certainly not to the degree that they did a few years back. A relevant point can be made without resorting to overstating one’s case to an absurd extent.
