Structured finance, which has been the key to this credit bubble, has broken down. We believe that confidence in structures, ratings, collateral, issuers, counterparties, etc., has all been lost. Therefore we are in a very precarious position. Credit has driven the economy and has driven markets. Credit has to grow year-over-year in this credit bubble environment in order for the economy to grow. With structured finance having broken down, in our opinion, there is no way that credit will grow year-over-year any longer.
... We are living in very different times than the ones we've experienced over the last 20 years. What has to be recognized, in our opinion, is that it's truly different this time. We see this as being the end of credit expansion.
~ David Tice
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