The Leverage Cycle: How Credit Transfers Pricing Power From Pessimists to Optimists

In your book, you cite research by John Genea Koppless. The Harvard economist has a great paper called The Leverage Cycle. You use this for the basis of a causal explanation as to how credit transfers pricing power from pessimists to optimists. Can you break down that explanation for us? I think it's really important. It's one of the most interesting theoretical insights that I've seen in finance in the past 20, 30 years.