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"We are mobilizing ourselves so that we can have some leverage, make some difference, in these meetings," Dr. Apraku said.
Though volatility and leverage make for a higher profit potential, even veteran investors with nerves of steel might have trouble keeping calm during the sharp upturns and downturns of the market.
Our voices and our leverage make a difference.
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And leverage makes any losses worse for the underlying fund.
Universal appears to have powerful leverage, making its demands more than just the usual negotiating posturing.
And businesses like debt because it offers them tremendous leverage, making it possible to put down a little money and potentially reap a huge gain.
It is relatively difficult to accumulate the savings needed to pay cash for housing, and so homeownership will be less common than renting unless borrowing to purchase is made cheap and easy.Unfortunately, the introduction of leverage makes things messy.
Regulators became tougher on capital and leverage, making the investment banking game more expensive to play, and the volume of trading in the fabled fixed-income, currencies and commodities (FICC) business dried up.
The forecast of rising household debt is likely to cause concern to economists, many of whom argue that high household leverage makes economies more prone to financial shocks and subsequent deep recessions.
That is why a higher leverage ratio (confusingly also referred to as "less leverage") makes banks safer.The rhetoric that capital is "held in reserve" is advantageous to bankers, as it makes it sound like capital requirements hurt the economy: money that is held in reserve cannot be lent out.
A combination of aggressive lending, overbuilding and excessive leverage made central California "ground zero for the housing crisis," Zandi says.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com