crises are bullish! (or moral hazard can be your friend)
Wall Street’s favorite economist, Ed Hyman, writes in today’s missive:
Financial Crisis Can Be Positive For Financial Assets
When Mexico blew up in 1995, stocks and bonds surged. Stocks and bonds rallied in 1997 as the Thailand crisis spread. It=92s too early and impossible to tell if yesterday=92s weakness in the housing sector was the start of a crisis, but it bears watching.