Government's Failure to Communicate [View article]
Take a moment to consider the multiple layers of leverage in this story to communicate. First, you have the bank stocks which was inflated by the bank's huge leverage. Then you're using that as collateral for margin loans = more leverage. With that money you are buying hedge fund and private equity stakes which are levered. = Three layers of leverage.
What exactly do you want them to say? "Leverage TARP and double down baby! This is free money and take what you can as fast as you can before someone figures this out!"
Government's Failure to Communicate [View article]
First, you have the bank stocks which was inflated by the bank's huge leverage.
Then you're using that as collateral for margin loans = more leverage.
With that money you are buying hedge fund and private equity stakes which are levered.
= Three layers of leverage.
What exactly do you want them to say?
"Leverage TARP and double down baby! This is free money and take what you can as fast as you can before someone figures this out!"