### Comment:
It’s a reason to be less concerned about a feedback loop. But they aren’t without correlation. A week jobs market will push the default rate above historical projected rates. Not just cause random isolated defaults.

### REPLY:
The business cycle is already factored into the risk analysis and the premiums charged on the loans. That shouldn't concern anyone, systematic risk is what pays the bills. We are concerned about unforeseen risks or cascading risks that balloon. Afaik, financial institutions are not padding their own books with SLABs nor are insurance companies offering leveraged FDs to the degree they were with MBS.

### END.