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U.S. industry fated to pile leverage on leverage until the whole structure tumbles down?
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He exploited price discrepancies and piled leverage into his trades.
Of late the heartland played it safe while Goldman, Merrill Lynch, Lehman, et. al, piled leverage upon leverage.
The longer it has been since a painful collapse, the greater the willingness to pile on leverage and complexity, such that the next crisis becomes unmanagably awful.
Yet another was allowing commercial and investment banks to pile on leverage on a scale that no one even conceived of 20 years ago.
Absurdly, some private-equity firms even charge portfolio companies fees for helping them refinance their debt when they're the ones to pile on leverage in the first place.In this section Drought warning The road to self-deception Fright simulator Contact sports Asia's rice bowls Fee high so dumb Exports to Mars ReprintsWhy would deal fees be on the rise?
Yes, it was short-term obsession with profits that inspired fee-hungry investment banks to pile on leverage and craft byzantine securities not even their own risk managers could understand.
And to bolster returns, they piled on leverage.
So it's not surprising that many companies prefer to pile on the leverage.
Not only do they have an incentive to pile on the leverage themselves, they are periodically exposed to overindebted customers, especially real estate developers and leveraged buyout houses.
The risk and the leverage piled up, and, in the short term, the billions rolled in.
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