The Real Economy Cannot Support the Financial One – A way to play coming defaults
If we assume financial assets represent a claim against real assets, then it’s not a stretch to say financial asset valuation is way out of whack relative to the real economy.
Claims on the real economy have increased 11:1 since the credit crunch…I don’t think it is a stretch to expect lots of defaults and bankruptcies if this trend is not turned around quickly. And I don’t see much on the horizon to be optimistic about a quick turnaround.
A trading idea to play future defaults using ETFs.
