Fannie May and Freddie Mack, leveraging their loans 80 to 1

Banking and lending has become a losing game of Dominos in Vegas

By Dr. Laurie Roth —— Bio and Archives--October 3, 2008

American Politics, News | Comments | Back To Full Article

Since when did common sense economics turn into a losing game of dominos on steroids? We know that Banks loan and leverage out 10 to 1. So when you come to a Bank and pencil a mortgage, they loan, gamble and leverage up to ten times on that loan, splitting, dissecting, creating new products out of pieces of the loan and continuing. Are you dizzy yet?

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