I am watching the documentary on CNBC which shows how the housing bubble was created in America and how it eventually burst.
Greenspan said even if he knew that bubble was coming, there is nothing that he can do to stop it. That tells me how naive the FED can be. He also said he had access to few hundreds of PhD and they all don’t understand the underlying formula of CDOs. He added, if all those PhDs don’t understand CDOs, how are the rest of those buyers going to know what they are getting their hands on.
So the question remain in my mind… What is the next bubble that I can profit from?
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