{"id":195564,"date":"2008-06-30T05:00:00","date_gmt":"2008-06-30T10:00:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/30\/deleveraging-defined-as-getting-out-of-debt-before-creditors-realize-that-you-are-broke\/"},"modified":"2008-06-30T05:00:00","modified_gmt":"2008-06-30T10:00:00","slug":"deleveraging-defined-as-getting-out-of-debt-before-creditors-realize-that-you-are-broke","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/30\/deleveraging-defined-as-getting-out-of-debt-before-creditors-realize-that-you-are-broke\/","title":{"rendered":"Deleveraging: Defined as Getting Out of Debt Before Creditors Realize that You Are Broke"},"content":{"rendered":"<p>The major banks are deleveraging, <a href=\"http:\/\/www.iht.com\/articles\/2008\/06\/26\/business\/col27.php\">reducing their debt to asset ratio<\/a>.<\/p>\n<p>They are worried that in the event or a run, they could go into Bear Stearns style meltdown, and that if Congress of the SEC start increasing margin requirements, that they will be caught flat-footed.<\/p>\n<p>Additionally, the leverage that they retain is being moved to longer term loans, which insulates them from a panic, at the cost of higher interest rates.<\/p>\n<p>We still have a way to go down as this all unwinds, but one consequence will be higher interest rates, as the availability of money decreases, and supply and demand drives the price higher.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The major banks are deleveraging, reducing their debt to asset ratio. They are worried that in the event or a run, they could go into Bear Stearns style meltdown, and that if Congress of the SEC start increasing margin requirements, that they will be caught flat-footed. Additionally, the leverage that they retain is being moved &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,985],"tags":[],"class_list":["post-195564","post","type-post","status-publish","format-standard","hentry","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195564"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=195564"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195564\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=195564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=195564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=195564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}