On: A new credit bubble gets ready to burst

[RandomInteger4]

Are there any ways to hide leverage?

[miketery → RandomInteger4]

Yes, by inflating asset values.

[samsonradu → miketery]

Can you please elaborate?

[all2 → samsonradu]

I'm assuming the logic goes something like:

If we are leveraged at 100% when we take the real valuation of assets into account, then, if we jack up the valuation on assets we hold, then we can chip away at the leverage ratio and get it to go down.