Comments on: Taleb Offers Positive Black Swan on Otherwise Dull Day http://www.ritholtz.com/blog/2009/07/taleb-offers-positive-black-swan-on-otherwise-dull-day/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 19:25:27 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: leftback http://www.ritholtz.com/blog/2009/07/taleb-offers-positive-black-swan-on-otherwise-dull-day/comment-page-1/#comment-193740 leftback Wed, 15 Jul 2009 16:48:26 +0000 http://www.ritholtz.com/blog/?p=32330#comment-193740 We do have way too much government debt, and in the long run all interest rates are going to have to rise to reflect the true cost of lending, but this will happen much later - for now our masters will permit, or even engineer, yet another stock collapse to usher domestic investors into Treasuries. As usual, many will buy at the wrong time... Taleb is right about debt-for-equity exchange, but no-one will listen. Another train wreck is coming. We do have way too much government debt, and in the long run all interest rates are going to have to rise to reflect the true cost of lending, but this will happen much later – for now our masters will permit, or even engineer, yet another stock collapse to usher domestic investors into Treasuries. As usual, many will buy at the wrong time…

Taleb is right about debt-for-equity exchange, but no-one will listen. Another train wreck is coming.

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