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The Boom - Where Did It Start?

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Hi, I remember reading or hearing somewhere that the Fed (I guess Greenspan) allowed the 5 major US banks to leverage up to 50:1, but I'm struggling to find this information. I think I also heard that this was in response to a similar thing that had happened in the UK, which meant the US banks couldn't compete.

Is this correct?

If so, who in the UK started it? and what were the banks leveraged previously?

For me this is possibly the centre of the boom and then the crash. The massive inflation of the money supply without the corresponding wage inflation has caused the huge debt overhang.

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Hi, I remember reading or hearing somewhere that the Fed (I guess Greenspan) allowed the 5 major US banks to leverage up to 50:1, but I'm struggling to find this information. I think I also heard that this was in response to a similar thing that had happened in the UK, which meant the US banks couldn't compete.

Is this correct?

If so, who in the UK started it? and what were the banks leveraged previously?

For me this is possibly the centre of the boom and then the crash. The massive inflation of the money supply without the corresponding wage inflation has caused the huge debt overhang.

Off balance sheet vehicles have a lot to answer for.

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Hi, I remember reading or hearing somewhere that the Fed (I guess Greenspan) allowed the 5 major US banks to leverage up to 50:1, but I'm struggling to find this information. I think I also heard that this was in response to a similar thing that had happened in the UK, which meant the US banks couldn't compete.

Is this correct?

If so, who in the UK started it? and what were the banks leveraged previously?

For me this is possibly the centre of the boom and then the crash. The massive inflation of the money supply without the corresponding wage inflation has caused the huge debt overhang.

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Edited by tallguy

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  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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