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Leverage is a problem..
Excessive leverage is a source of great fragility.
This is all, just pure leverage is a simple thing to understand.
The FATF contends its main source of leverage is a blacklist of countries that have failed to adopt or implement adequate laws.
"Leverage is a double-edged sword," Richard Bernstein, an analyst at Merrill Lynch, wrote in a note to clients a few days before Goldman announced its efforts to prop up the Global Opportunities fund.
Both Deutsche and Barclays argue that looking at overall leverage is a poor measure of risk, in part because many of the derivatives they own cancel each other out.
Similar(29)
When I asked Trump about this, he said, "Leverage is an amazing phenomenon.
There are other people here who think that leverage is an important part of they system.
Leverage is an elixir that makes profits soar when times are good, but magnifies losses when the economy sours.
High leverage is an essential, uniquely optimal feature of bank capital structures when liquidity is priced at a premium due to demand for assured access to capital.
Ultimately, the decision to recapitalize or add leverage is an economic one.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com