“I’m building breathtaking sand castles,” he wrote, “but nothing stops the tide from coming and coming and coming.”
Note: "sand castles" - Mike Burry on investing... also, a metaphor of life.
it sounds scary and binary
Note: stocks vs bonds question is never quite binary but rather it a question of degrees
The CDO was, in effect, a credit laundering service for the residents of Lower Middle Class America. For Wall Street it was a machine that turned lead into gold.
Note: CDO or collateralized debt obligation. Money of interest pays however if there is lot less interest gets paid, the risk is still rated as if was a safe asset. Crazy!
If you mapped the spread of the idea, as you might a virus, most of the lines pointed back to Lippmann. He was Patient Zero.
Note: Lippmann as in Greg Lipmann aka 'Shittman', Deutsche Bank trader who betted against US home loans.