A Principle That Bears Repeating

Denninger:

I go back to the fundamental mathematics of lending and business, as I have repeatedly explained over the last two years and change. That is, the more people that touch a deal the less money there is available in that deal for the end purchaser. What this means is that the maximum risk-adjusted return exists when one person loans another money - the more complex the deal gets than that, the less total return the end buyer of the debt, all-in, can obtain - UNLESS SOMEONE CHEATS.