problem is biiger than what looks like

来源: 于 2007-06-22 11:24:22 [旧帖] [给我悄悄话] 本文已被阅读：次

investment banks are highly leavaged. Given the run-up of stock market, one has to ask how much leavage these investment banks have used to chase market.

LBOs use 3 to 1 leavage.

So, what looks like $50B is actually much bigger than $50 B. Plus, there might be chain reaction.

This migh explain why BSC is so afraid of MER auction its holdings.