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To: PJ-Comix

I thought black swan events were pretty much unpredictable by definition.


3 posted on 01/07/2024 10:40:49 AM PST by HartleyMBaldwin
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To: HartleyMBaldwin

Here is a hilarious article (if you share my dark sense of humor) showing just how fragile the economy is right now:

https://www.zerohedge.com/markets/pension-fund-crisis-calstrs-seeks-30-billion-leverage-amid-cre-turmoil

Short version:

The largest state pension fund invested heavily in commercial real estate (CRE) which has crashed in value.

If they liquidate the CRE their holdings are large enough that they could destroy the entire CRE market nationwide.

That in turn would bring down most of the banking system—especially regional banks who have more outstanding CRE loans than they have equity.

However—the pension fund needs cash to pay the retired teachers—now.

Solution: Borrow 6 billion dollars to meet their obligations this year.

Remember—after you max out all your credit cards your best move is to try to find somebody stupid enough to give you another one!


7 posted on 01/07/2024 10:47:40 AM PST by cgbg ("Our democracy" = Their Kleptocracy)
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To: HartleyMBaldwin

“I thought black swan events were pretty much unpredictable by definition.”

exactly ...


9 posted on 01/07/2024 10:57:31 AM PST by catnipman (A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil)
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To: HartleyMBaldwin
I thought black swan events were pretty much unpredictable by definition.

People use it when they mean "a perfect storm" too.

12 posted on 01/07/2024 11:09:19 AM PST by gloryblaze
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