Every One Of These Leverage Geniuses WILL Go Down Before "IT" Is History

[Jeff Tumbarello]

Leveraged "geniuses" never make it through the valley between the peaks.

http://www.news-press.com/article/20091024/RE/91023073/1003/ACC

Why must it be? Because the peaks are CAUSED by leverage, the valleys between are just sanity's effect on true value of a good/service in cash or trade.

Coming next to the cliff's edge will be the equity holders. As taxation/insurance/utilities/maintenance costs rise above gross profit
in a shrinking-value world of deflation, even their bottom numbers turn red. Simple math still works in a complex-math-addicted world no matter what textbook or economist one chooses for guidance otherwise. Math which ends in a red number only works while there are reserves to bring that number back up to zero. Once leverage is cut off and the cash reserves are drawn to zero, the red number is ALWAYS zero, as its shortfall simply cannot be paid in the negative.

Only the level of reserves in cash prioritizes the order in which we all
fall if jobs are not created with USEFUL and affordable costs.

As a Nation, we aren't even HEADED there yet, yet alone "working on it". To even turn toward the required goal, the "leaders" would have to recognize the simple math's clear answer, another feat which will go untried as long as they can and will hit the Debt-Button to stave off recognition of the harder work necessary to FIX IT instead.