The markets rocketed upwards yesterday propelled by promises of a second stimulus package from congress, which was endorsed Fed chairman Bernanke. Anything to postpone current discomfort is welcome news on Wall Street. Sure, let’s try to borrow our way out of this credit crisis.
Many readers have asked what the one thing was that made the biggest contribution to the demise of many investment firms and banks. Without a doubt, it was leverage. For some thoughts on that, take a look a this video clip: