“And so it can be very much in the interest of bank A to sell-short bank B shares, or buy CDSes on bank B, because they have exposure to bank B. It's the responsible thing to do as a fiduciary, and yet if everyone does it at the same time, it's destabilizing because everyone is selling.” IfsDoeInterestShareResponsibleSellsSellingThings To DoExposureFiduciary Author:James Chanos
“What we define as a bubble is any kind of debt-fueled asset inflation where the cash flow generated by the asset itself - a rental property, office building, condo - does not cover the debt incurred to buy the asset. So you depend on a greater fool, if you will, to come in and buy at a higher price.” IfsKindDoeGreaterBuildingFoolDependsHigherOfficeFlowPropertyDebtAssetsCashBubblesInflationCash FlowOffice Buildings Author:James Chanos
