How did it happen?
Read it here:
The investment banks went to regulators to obtain permission to increase their leverage from a factor of 12 to a factor of 40 times capital. Much of that leverage was being applied to the already heavily leveraged oil market, where $10,000 controls over $100,000 of product. In the new scenario, $10,000 in the hands of an investment bank controlled $4 million in product.
http://www.newgeography.com/content/008 ... atrick.net
Einstein said two things were infinite; the universe, and stupidity. He wasn't sure about the first, but he was certain about the second.
