Schmuck Raker
Speaking of China...
"Global Times: "Time to teach those around South China Sea a lesson." "
http://m.mcclatchydc.com/dc/db_112249/contentdetail.htm?contentguid=gw7Q...
apberusdisvet
A_MacLaren
A good deal of leverage has been shaken out of the system, of that there can be little doubt.
Oh yes there can be doubt about the amount and degree to which leverage has been shaken out of the system. Sean, you're not reading this and certainly are not going to respond, so this comment is rhetorical.
I would suggest the leverage hasn't disappear, please show me which aggregate debt levels are falling?
Debt is leverage.
I would suggest the opaque leverage is growing, and is less visible. Derivatives employ huge amount of leverage, buy a CDS for some amount of bps above an index or a swap rate, and receive huge faux insurance for debt (leverage) for pennies on the thousands and millions of currency units.
Derivatives are leverage.
TimmyG and Madame Lagarde, other systemic supporters continue to advocate loans and leveraged loans as bailout mechanisms for other debt and leverage turned sour and going bad.
Ponzi leverage to prop up a failing system of excess leverage wherein the prior losses have not and cannot be recognized, lest the entire house of cards fall flat.
Old news. I'm making a call on what you all may now officially plagiarize as "The Fukushima/Arab Spring hiccup." The economic recovery is underway. Chaos in Europe is it's spark. It's going to start gathering steam in November and we're gonna have one of the greatest dog-fights in political history between Mitt Romney and the incumbent President Obama which will only serve to push the economy more and more towards growth. I still recommend the idea of lowering the age of eligibility for Social Security for this Administration as a "crass political vote getting scheme" which has the added value of instantly generating economic growth.