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Deleveraging Continues

As leveraged assets go down in value, the leverage multiples go up. Adding to that multiple is the falling dollar and the fact that these assets are in reality debt deposits, not cash deposits, that were passed on in different forms to be leveraged over and over.

-Minyan Jim

DepewTube: Stressed Out Credit Markets

Minyanville Staff Aug 18, 2008 4:37 pm


	Markets, movers and more.

According to Kevin, the nationalization of Fannie Mae (FNM) and Freddie Mac (FRE) is an inevitability. The question now is, which levels of debt holders get protection - and how much protection do they get?

In the Buzz & Banter segment, Kevin notes the disconnect of late between equities and credit markets. With credit markets still in stress mode, the next few weeks will be critical for financial markets.


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