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View Full Version : Is Leveraging $(1,000,000:1) possible? -- maybe even L > 5,000,000:1?



billstew
03-29-09, 05:31 AM
Is Leveraging $(1,000,000:1) possible?

From my understanding of the forcing functions of this Global Finsec Meltdown it is possible to have leveraging at extremely high ratios sustained for long runs of time.

It was implied by a news story (can't remember the source) that in the US finance system it was possible to start a bank with $0.00 in deposits -- and start lending out hundreds of thousands of dollars.

Maybe the way out of the finsec crisis for the US is to allow for leveraging ratios that are stratospheric -- like 1,000,000,000:1 and so on.

The US finance system is already gutted and beyond help -- and has been for many years, so does it really matter? My long term American Analysis hunches tell me it does not matter at all -- so long as the regime is kept in power.