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The government implicitly guaranteed their creditworthiness, enabling them to borrow at below-market rates.
Other investors have also taken advantage of the "carry trade", enabling them to borrow at low interest rates in yen and reinvest at higher rates overseas.
In return, buyout firms extracted lenient lending terms at low prices, enabling them to borrow more as they bought ever-larger companies.
A number of London councils have set up their own semi-detached housing delivery companies, enabling them to borrow to build homes their residents can afford.
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However, he added that it would also appeal to those who didn't have the equity in their property to enable them to borrow an extra £35,000.
One controversial source of OneWest foreclosures is the corporation's reverse mortgages, which are loans to elderly homeowners that enable them to borrow against their home equity.
The F.D.I.C. encourages people to deposit money in banks, and the biggest banks also benefit from the perception that the government will not allow them to fail, which enables them to borrow money at a low cost.
But they want to get bigger and they receive implicit government subsidies, in the form of downside protection available to creditors, which enable them to borrow more and potentially expand without limit.
"Too big to fail" provides a taxpayer subsidy to the megabanks in the form of bolstered credit ratings that enable them to borrow more cheaply than smaller banks not benefiting from such a guarantee.
With lower interest rates, an improved approval process and incentives designed to improve one's credit and enable them to borrow more over time.
A chart he uses shows the multiple of leverage rising from four times in 2002 meaning $4 borrowed for every $1 of equity capital to 6.2 times in 2007, meaning that firms' access to money enabled them to borrow $6.20 for every $1 in equity.
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