FOSDEH y los medios
Leverage, Private-Equity, Honduras
Much of the current financial crisis is down to leverage (a fancy word for borrowing money). There was effectively too much cheap debt flying around that individuals could use to substantially increase their own wealth, the trouble beginning when that debt, in many peoples' hands, ended up being unpayable e.g. the collapse of the subprime mortgage market. The galling thing is that groups, such as private equity firms, were able to use this leverage to accrue vast amounts of profit without utilising any rare and exceptional business skills.