The World Is Coming to an End

When Oaktree raised the distressed fund in 07, it was a year after housing had already begun to roll over. "Subprime mortgages began to soften in the first or second quarter of 06," he says. But people didn't generalize it to the rest of the world and apply weak standards every place. That implies that the system had been faulty because people weren't making bad decisions just one place.