You gotta admit it adds a new meaning to
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Originally Posted by
selil
...we're falling and all anybody keeps doing is make us fall faster.
'stimulating.' :D
Leverage Ratios and Capitalism
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Originally Posted by
George L. Singleton
The textbook rule of thumb is a 5X money multiplier, which is bad enough.
Greed drives all this.
George,
The attached wikipedia link reflects 2007 leverage ratios in the low 30's for Bear Stearns, Merrill Lynch, and Morgan Stanley. Goldman Sachs is depicted at 25 and Lehman Brothers as approximately 29 and change. The data was reported as being gathered from company reports.
The WSJ has the following at the link
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But Mr. Gramm makes no mention of deregulatory movement within the executive branch, most notably the 2004 decision by Securities and Exchange Commission leaders to exempt the nation's largest investment banks from existing net capital requirements, and Chairman Christopher Cox's subsequent reluctance to apply the SEC's oversight capabilities. It was after this that leverage ratios skyrocketed from a limit of 12 to 1 up to peaks of 30 to 1 or higher, as in the cases of Bear Stearns and Lehman Brothers.
In my younger days, before I joined up with the USG, I spent two years collecting bills (30 to 120 day buckets) for Citicorp. I learned many things about business and capitalism during that time and I do not recall a single one of our customers receiving a bailout :rolleyes:
Best,
Steve
Are you talking about the folks who did
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Originally Posted by
slapout9
I watched that last night. All those folks should be in GITMO since there will soon be plenty of space down there. It was not just criminal it was treason!
what they legally if not ethically could do to help themselves make more money -- which is what their business was all about -- or the Politicians who can unfortunately legally if not ethically take that money and thus abrogate their Oath to the Constitution and thus indirectly to the nation and the American people.
I'd be inclined to put people who ignored their duty for money in jail before I would try to jail people who used money to make money -- the which was their nominal job...