ET Podcast #8 - Leverage and Its Discontents
April 2, 2021·3 comments·In Brief
Three blow-ups in three months: Archegos, Greensill, and Melvin Capital.
What do they have in common?
Insane leverage employed to maximize private gain, provided by lenders that can socialize losses.
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Comments
When you’re among wolves, you must bay at the moon.
I found the discussion interesting thank you. I somehow feel that the narrative about the “private” investor coming into the market to provide idiosyncratic opportunities to be a bit naive! we should improve the analysis: If people have not worked out that Robin hood and co. we should help: they are the best allies of Wall Street and they are not a casual occurrence, they are the conduit from what once was a bucket shop to financial markets. the narrative about them needs to be rectified: these tools that are simply luring into the game the greater fools and allowing them to leverage beyond this solar system… happy Easter everyone
> Insane leverage employed to maximize private gain, provided by lenders that can socialize losses.
A spot-on observation like that deserves immediate translation into Esperanto:
“Freneza levilado utiligita por maksimumigi privatan akiron, provizita de pruntedonantoj kiuj povas socialigi siajn perdojn.”
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