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**mireOpekrhype** · 09-03-2011, 03:51 AM

No, the reason the government went for capital injections was to take advantage of the banks' ability to leverage. 700 billion *10X leverage = 7 trillion

Now that is true but due to deregulation banks can leverage 40 to 1 not just 10 to 1.

09-03-2011, 03:51 AM	#12
mireOpekrhype Join Date Oct 2005 Posts 496 Senior Member	No, the reason the government went for capital injections was to take advantage of the banks' ability to leverage. 700 billion *10X leverage = 7 trillion Now that is true but due to deregulation banks can leverage 40 to 1 not just 10 to 1.
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