More on just how crazy the Chicago really is. Only a totally moron with zero basic understanding of how banking works would ask this question: “Why would Lehman’s failure cause a panic? Why, after seeing Lehman go to bankruptcy court, would people stop lending to, say, Citigroup, and demand much higher prices for its credit default swaps (insurance against Citi failure)? ” Cochran, he’s a professor of finance. When your theory says markets immediately price risk fully with 100% knowledge of the future, you end up looking like total moron.
A bit short from yesterday due to dealing with taking my mom to the hospital. She’s fine!