Money Multiplication = Problem Root

[LR]

Root Problem: 10x100 "Financial Leverage" Creative Accounting

FRE & FNM used up to 100x leverage, AIG & LEH used up to 30X leverage;
and that's after the banks used up to 10X Leverage on financial debt.
This has to be stopped. The root problem going back to 1912 has to be
fixed.

WWW.GrandfatherReport.Us

Richard Fuld, CEO of LEH, admitted to 30x leverage contributing to the
problem.

Now I read on seekingalpha.com about FRE and FNM doing 100:01 leverage
on their debt insurance.

Most investment banks were leveraged by a ratio of 30 to 1, and they
were dealing with billions of dollars instead of thousands. Government
sponsored mortgage giants Freddie (FRE) and Fannie were using leverage
closer to 100 to 1, because of their supposedly stricter lending
standards and implicit government backing.

http://seekingalpha.com/article/97299-leverage-101-the-real-cause-of-the-financial-crisis

How can "we the people" know the root cause is being "fixed" if we
don't know about the root cause. Most of the news is telling us the
root cause is a lack of confidence about all those mortgages being
paid as agreed.

And are we sure we understand what happens when 100:01 leverage is
applied after the fractional banking reserve requirement is applied?
Maybe if this subject needs a spotlight to get people's attention.
Then maybe the "lack of confidence" could be better understood.

www.GrandfatherReport.Us