David Adesnik | Director of Research
quoting John H. Cochrane via Seeking Alpha
There they go again! Offering a put for mismatched dealers that will continue to promote borrowing short to carry long securities. See here. For an update, see here. Borrowing short to lend long is what tanked the financial system in 2007-2008, as well as just about every other financial crisis described in This Time Is Different.
Posted on September 20, 2019
by Brad W. Setser