I believe we have reached the end of a multi-decade credit super-cycle and can now look forward to a lengthy period of de-leveraging, with banks and dealers gradually repairing their balance sheets and restoring their capital ratios by curtailing lending and raising equity. A super-cycle credit bubble like this, which has been more than 25 years in the making, will not be unwound in six months or a year. This is going to be a longer process.
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