Margin and leverage

Love this line by Steve Yuen commenting on margin and leverage, the securitization of debt, and sub-prime delinquencies:

[T]he lever on the way up is the screw on the way down.

Bernard Guerrero, from the comments,” by Tyler Cowen, Marginal Revolution, August 17, 2007
Another good one from Steve Yuen:

Q. How do you borrow 100% of the value of your house?
A. Buy it with 20% down…

This Party’s Over,” Views by the Bay, August 7, 2007
And don’t miss the link to the YouTube video of a VW Beetle being shredded….

Posted in: Economics

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