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cheap credit and investing

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  • cheap credit and investing

    I'm curious. How much influence does the availability of relatively cheap credit today and even cheaper in the near future perhaps, have to do with amount of speculative borrowing that is being done?

    Was there always this much leverage being used by hedge funds and others?

  • #2
    Re: cheap credit and investing

    Originally posted by brucec42 View Post
    I'm curious. How much influence does the availability of relatively cheap credit today and even cheaper in the near future perhaps, have to do with amount of speculative borrowing that is being done?

    Was there always this much leverage being used by hedge funds and others?
    Well, it follows that if there is cheaper credit, a company can take out more loans at less interest and could stake out more positions.

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