{"id":359452,"date":"2018-05-03T02:38:25","date_gmt":"2018-05-03T01:38:25","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/prison-planet-com-greg-the-big-short-lippmann-says-corporates-will-cause-the-next-crisis\/"},"modified":"2018-05-03T02:38:25","modified_gmt":"2018-05-03T01:38:25","slug":"prison-planet-com-greg-the-big-short-lippmann-says-corporates-will-cause-the-next-crisis","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/prison-planet-com-greg-the-big-short-lippmann-says-corporates-will-cause-the-next-crisis\/","title":{"rendered":"Prison Planet.com \u00bb Greg \u201cThe Big Short\u201d Lippmann Says Corporates Will Cause The Next Crisis"},"content":{"rendered":"<div>\n<p>      <!-- START CONTENT --><\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/news\/2018-05-02\/greg-big-short-lippmann-says-corporates-will-cause-next-crisis\"><strong>Zero Hedge<\/strong><\/a><br \/>May 2, 2018<\/p>\n<p><strong>Former Deutsche Bank trader Greg Lippmann is best known for having worn t-shirts with the logo \u201cI am short your house\u201d just before the financial crisis hit, and the US housing market imploded (making Lippmann very rich in the process). Logically, he is also very well-known for designing the trade against subprime mortgages that became known as the Big Short.<\/strong><\/p>\n<p>Well, Greg \u201cThe Big Short\u201d Lippmann is back with a new warning, telling Bloomberg that the next crisis will emerge from corporate debt (hardly a <a href=\"https:\/\/www.zerohedge.com\/news\/2016-08-18\/us-corporate-debt-has-doubled-6-trillion-crisis-who-bought-it\">surprise <\/a>to <a href=\"https:\/\/www.zerohedge.com\/news\/2018-04-18\/imf-sounds-alarm-global-debt-warns-united-states-stands-out\">regular readers<\/a>).<\/p>\n<p>Speaking at the Milken Conference, the former MBS trader who now runs his own, $3 billion hedge fund LibreMax Capital, told Bloomberg\u2019s Erik Shatzker <strong>that\u00a0corporate debt\u00a0and equities will face the biggest pain when the next downturn comes; <\/strong>meanwhile unlike the last crisis, investments linked to consumer debt <em>should <\/em>be relatively safe as companies have been the ones gorging the most on the ultra cheap interest rates during the past decade (alas, this is yet another analysis that avoids the impact of student and auto loans, which have taken consumer debt to new all time highs).<\/p>\n<p>\u201c<strong>If the first quarter\u2019s volatility is a harbinger of something bigger, I think that you\u2019re going to see a lot more trouble in the corporate market and the equity market than the structured products market<\/strong>,\u201d Lippmann said during a Bloomberg interview in Beverly Hills. \u201cThe consumer is in much better shape than corporates. Consumers are less levered than they were pre-crisis. <strong>Corporates are more levered than they were pre-crisis, and I think structured products are not going to be the epicenter.<\/strong>\u201d<\/p>\n<p>Lippmann also predicted that while the next recession may not be imminent, \u201cit is on the horizon\u201d and will be less severe but longer than the global financial crisis of 2008 and 2009. It\u2019s likely to be more akin to 2000 through 2002, he said.<\/p>\n<p>Of&#8230;<\/p>\n<\/div>\n<p><a href=\"http:\/\/www.prisonplanet.com\/greg-the-big-short-lippmann-says-corporates-will-cause-the-next-crisis.html\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zero HedgeMay 2, 2018 Former Deutsche Bank trader Greg Lippmann is best known for having worn t-shirts with the logo \u201cI am short your house\u201d just before the financial crisis hit, and the US housing market imploded (making Lippmann very rich in the process). Logically, he is also very well-known for designing the trade against [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-359452","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/359452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=359452"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/359452\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=359452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=359452"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=359452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}