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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (116082)	9/28/2008 6:45:05 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

skeeter, >so how would your version of a free market prevented lehman from leveraging 35-1 to up their own commissions and profits on the way up?< I'm not sure my version could stop a single company from leveraging up, but a more widespread demand for capital and leverage would get short circuited by higher interest rates because there wouldn't be enough savings available to meet the demand. As it is now, the Fed just provides whatever amount of liquidity is required to keep interest rates at the level the Central Bank wants. Sometimes that level is too low (in fact very often). That enables the crazies and corrupt to expand debt and excess to a much higher level and widespread degree.