Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
LTD: This is Bad News... | 23 comments (23 topical, 0 editorial, 0 hidden)
Leverage cuts both ways (4.00 / 2)
Any structure in which there is a high degree of leverage wipes out all of the equity very very fast when absolute prices roll back.

Allowing banks to make loans to unqualified people is the root of the housing bubble mess.  Throw gasoline on the fire in the form of back end loaded re-payments and you get a conflagration.  

by HiD on Sat Jul 12th, 2008 at 07:50:26 PM EST
[ Parent ]

Others have rated this comment as follows:

Migeru 4
ARGeezer 4

LTD: This is Bad News... | 23 comments (23 topical, 0 editorial, 0 hidden)
Display:

Top Diaries

What's Next, After the Slam?

by Frank Schnittger - Mar 22
2 comments

Shock Election Loss Rutte IV In Senate Race

by Oui - Mar 16
16 comments

Honduras Establishes Close Ties with China

by Oui - Mar 15
3 comments

A Return to Normalcy?

by Frank Schnittger - Mar 9
3 comments

A Grand Slam for Ireland?

by Frank Schnittger - Mar 14
14 comments

NI Protocol: It's all over bar the shouting?

by Frank Schnittger - Mar 2
3 comments

Chinese peace principles for the war in Ukraine

by fjallstrom - Feb 25
44 comments

The Windsor Framework

by Frank Schnittger - Feb 28
5 comments

Recent Diaries

Neo-Nazi Marches Across Europe

by Oui - Mar 22

Fascism Unites America, Israel and EU Neo-Nazis

by Oui - Mar 22
11 comments

What's Next, After the Slam?

by Frank Schnittger - Mar 22
2 comments

Settler Extremism Blessed by Jerusalem Leaders

by Oui - Mar 19
21 comments

US Interference In Lebanon-Syria-Ira
q

by Oui - Mar 17
31 comments

City Agriculture - March 17, 2023

by gmoke - Mar 17

Shock Election Loss Rutte IV In Senate Race

by Oui - Mar 16
16 comments

Stalemate Endures, Pessimism Grows, Deaths Mount

by Oui - Mar 15
32 comments

Honduras Establishes Close Ties with China

by Oui - Mar 15
3 comments

A Grand Slam for Ireland?

by Frank Schnittger - Mar 14
14 comments

Living In Spain and Social-Democracy

by Oui - Mar 13
4 comments

USA Censorship Act to Kill Disinformation

by Oui - Mar 13
4 comments

Flying Fortresses and Nuclear Threat

by Oui - Mar 12
8 comments

Universal Criticism Asylum Threshold EU Fortress

by Oui - Mar 11
12 comments

China Trade and Relations

by Oui - Mar 10
49 comments

SBU As a Terror Network

by Oui - Mar 10
15 comments

A Return to Normalcy?

by Frank Schnittger - Mar 9
3 comments

Georgia and Foreign Agents or Spy Law

by Oui - Mar 9
9 comments

Nord Stream Blasts Timeline of Denial

by Oui - Mar 8
23 comments

Crimea As Endgame Before Going M.A.D.

by Oui - Mar 6
14 comments

More Diaries...

Occasional Series