CDOs Are Back!

The Wall Street Journal reports:

The synthetic CDO, a villain of the global financial crisis, is back….In the U.S., the CDO market sunk steadily in the years after the financial crisis but has been fairly flat since 2014. In Europe, the total size of market is now rising again—up 5.6% annually in the first quarter of the year and 14.4% in the last quarter of 2016, according to the Securities Industry and Financial Markets Association.

I’d normally be all over this kind of thing. This is how it starts. Pretty soon, the Wall Street boys will be breaking out the bottles of Cristal again. And it is worth keeping an eye on. But I decided to redraw the chart from the Journal, and I have to admit it’s a little hard to get too bent out of shape:

If you squint, you can see a tiny blip upward at the far right end of the chart. Granted, the scale of the chart makes it look really small. Still, after soaring 600x during the housing bubble, it’s soared…1.3x since last year.

So, yes, let’s keep an eye on this. But even I find it hard to get too worried yet.

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Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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