Derivatives: Darth Vader's Revenge Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Derivatives: Darth Vader's Revenge

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Freedom Fighter who wrote (848)	3/25/1999 2:35:00 PM
From: Freedom Fighter	Read Replies (1) of 2794

Henry, I have one last question. When looking at credit expansion levels, most people look at non-financial credit. (household, business, government). In the 90s the greatest area of credit expansion has been in the financial area. It's often hard to keep up with the expansion of the balance sheets of FNMA, FREDDIE Mac, some banks etc... it happens so fast. It was particularly evident in the 4th quarter 98 as markets recovered. Why should this leveraging up of the financial system be any less important than household, govt, or corporate leverage? Intuitively it is evidence that the U.S. system is a financial asset bubble. The prices that prevail are only possible through massive leverage and not savings. Yet these type of debt bubbles have a way of unwinding in a much more painful way than they were pleasant during the formation. Wayne

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next