The Debt Bubble and the Credit Cycle

Dylan Love: I think we're in 2007 right now. Interest rates have gone up by, call it 400 basis points just for a number. The cap rates on commercial real estate have not even close to kept pace. If you need more proof of this, read the excellent Wall Street Journal article over the weekend that showed 12 charts that should cause you a lot of fear about US banks. And ultimately, everything translates back to credit risk because managers are jackasses when it comes to risk management.