Reckless Stock-Market Leverage Intoxicates Politicians | Wolf Street
The sudden bloodletting that leveraged currency speculators experienced when the Swiss National Bank yanked the cap on the franc should have been a warning: central-bank promises that everything is under control are meaningless. And because of leverage, innumerable trading accounts blew up in a matter of moments.Leverage acts like a powerful drug. It creates buying pressure and inflates asset prices […]