Additionally, while Democrats held the advantage in these negotiations over Republicans, in the next round Republicans may have a slight edge because, "[t]he House Republicans have a lot of leverage because if entitlements aren't cut to their liking they can block an increase in the debt ceiling.
This is critical, because the expansion of leverage not only provides massive liquidity to fund the expansion of the bubble, but the leverage also sets up the covenants that inevitably unwind when the bubble turns aggressively to the downside.
I'm guessing on the order because the degree of leverage will determine the next arm out of the pen, and that will be determined by the manager's trust.
Mr. Seehofer has lots of leverage because he, like Ms. Merkel, leads a political party.
"Anyone who borrows short and lends long does not have a friend these days," said Andy Brown, chief executive of Cedar Rock Capital, a money management firm that does not invest in investment banks because of their use of leverage.
A major international museum such as MoMA in New York has an enormous amount of leverage, because of its reputation, endowment and collection, but a small gallery with one star work can punch above its weight if it approaches the process cannily.
"It's not likely that Trump would use military contracting as a point of leverage because the government must have United Technologies engines in order to power its aircraft," Thompson said.
Because of the amount of leverage used, if a fund pays a 5percentt interest rate on the preferred shares it issues and earns 8percentt on that money through brilliant stock picking, the fund's common stockholders would receive a yield of 9.5percentt on their shares.
Because of this kind of leverage, returns can be high but losses can also be great.
