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Don't Run Before You Can Walk Diamond Food was leveraging up to buy Pringles, assuming $850 million in debt.
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"The whole economy was leveraged up, and we're now suffering the consequences," said Peter Schiff, president of Euro Pacific Capital, who offered early warnings about the current economic calamity.
At one point MDL was leveraged up 19-to-1 on this bet.
And so what ended up happening [was that] about $100 billion in capital was leveraged up to run $3 trillion in various aspects, various instruments.
Like the banks, hedge funds have been leveraging up their exposures to markets.This activity is splendidly profitable, as long as markets behave themselves.
What we don't want is internal hedge funds to be leveraging up and gambling using money that comes with a safety net for preventing devastating bank runs that is provided by taxpayers.
EU sources have repeatedly said the €440bn fund could be "leveraged up" fivefold.
Schäuble remains enraged by the suggestion of Tim Geithner, the US treasury secretary, that the EFSF be "leveraged" up to €2tn.
He recommended a fund be set up and capitalised with $250m, to be leveraged up by an additional $750m and empowered to lend to governments and banks in need of capital.
"I think it is a mistake to assume that a riskless, guaranteed way to prosperity is just to be leveraged up into property," Mr. Stevens told Channel 7's "Sunrise" program.
After the bailouts for Greece, Ireland and Portugal, the fund has only about $335 billion left, and officials believe that amount could be leveraged up by two or even three times by offering limited guarantees against losses on sovereign bonds.
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