Alert icon
We're changing our privacy policy. This stuff matters.  Learn more  Dismiss

Banking 10: Introduction to leverage (bad sound)

Loading...

Sign in or sign up now!
53,128
Loading...
Alert icon
Sign in or sign up now!
Alert icon
There is no Interactive Transcript.

Uploaded by on Oct 27, 2008

What leverage is. Why it is is good or bad. Leverage and insolvency.

Category:

Education

Tags:

Download this video

LICENSE: Creative Commons (Attribution-Noncommercial-No Derivative Works).

For more information about this license, please read: http://creativecommons.org/licenses/by-nc-nd/3.0/.

High-quality MP4 Learn more

  • likes, 4 dislikes

Link to this comment:

Share to:

Top Comments

  • US banking system is not having a liquidity problem as the government suggested thru the media. It is having a solvency problem.

  • keep the vids up man they r great

see all

All Comments (40)

Sign In or Sign Up now to post a comment!
  • Really good video refreshing my memory ):

  • Thanks for the video. 

  • This is prob a dumb question but, how is it a liability when you give someone a loan, it's not like you owe them money??? Could someone please explain this to me thnks

  • Videos are great you are replacing my corporate finance teacher. New sound would be great though

  • I like your video - subscribe to my channel and friend to have day trade videos

  • Good one. Clear on leverage and debt to equity

  • Good one.. clear on leverage and debt to equity..

  • @missmitalik there is really no safe value for debt leverage. For example if the Federal Reserve calls in all loans like in the great depression, or it drastically decreased like in the GFC (huge mortgages) then there will be too much debts and not enough paper money floating around.

  • @thehashcat debt equity ratio is good when you want to calculate the debt of a company or in this case a bank. It is used more realistically then A:E ratios because usually for a bank the debts are much higher then what they have in there equity, hence govt balilouts.

    D:E is also primarily used for calculations on stock/ options prices.

  • @Luigi84289 nope they are actually created out of debt.

Loading...
0 / 00Unsaved Playlist Return to active list
    1. Your queue is empty. Add videos to your queue using this button:
      or sign in to load a different list.
    Loading...Loading...Saving...
    • Clear all videos from this list
    • Learn more