The Unfairness of Lending Companies

Grace: As we are losing money on outright long positions, we are also losing money on balance sheet trade. So the idea that I might be able to do a grayscale trade or or a stake to theorem trade or whatever and the end hedge is bigger gross leverage. However, if I then start losing money also on directional position, then all of a sudden my leverage starts to go up a lot, right? Very quickly. Grace: This is this is because all of the lenders remember are under pressure to lend out actually. They want to see credit just in an ever expanding way.

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