In Aruba still so don’t have the screenshot or transcript, but Michael Lewis is on Bloomberg here now talking about “The Big Short.” He’s shifted back/forth more times than I can count after a week of vacay, what the hell? Is he going senile or is it just me?
Let me know, seriously, I can’t possibly be alone in these observations, although you’re all amp’d on coffee and I’m still drinking vino, so, uh…
So apparently Lewis is of the idea that ibanks are “in the wrong” when their clients (*CalPERS*, *AIG* you get the idea) request X risk profile with Y rating, yadda yadda, and lo and behold, said banks, shocker, deliver the product. Just because, as I’ve discussed and debated (Janet Tavakoli, Yves Smith, etc), if the VOLUNTARY counter parties (“clients”) to financial transactions are contractually committed to a bilateral deal, and INEVITABLY, one parties’ assumptions turn out to be wrong, or in any way, shape, or form divergent from said parties’ expectations, that is NOT – -NO SERIOUSLY, ABSENT BLATENT ILLEGAL BEHAVIOR – – THE FAULT OF THE COUNTERPARTY. FUCKING PERIOD.
FD: I’m neither a lawyer or whatever. Bring the criticism.