“Banks are cheap and quietly collecting the interest the government pays on its mountain of debt, a steady dividend play that holds up when defaults hit.”
“I've been fairly constructive on banks and financials because they're resilient against defaults. I mean, one, they already have pretty high levels of reserves and treasuries and fairly safe assets. Two, they're on the receiving side of fiscal deficits. So a lot of this interest expense is going to banks and financials. And they're pretty cheap.”
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