This Shorting Opportunity Is As Great As 2007-2009….. when you wipe away debt, you also wipe away equity.
… we used all our monetary firepower to avoid the first downturn in 2007-09, so we are really at a dangerous point to try to counter the effects of a slowing China, falling commodities and EM incomes, and the ultimate First World effects. This is the heart of the message. If economic activity far from picks up, but falters, then there will be a painful round of debt default.
For those who have failed Chapter 11 (or 7) 101, a quick reminder: when you wipe away debt, you also wipe away equity.