leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals … crisis ; optimal leverage and debt ratios ; Congressional Oversight Panel ; Case-Shiller index …

function on too thin layer of capital - high leverage - owing to a misreading of the degree of risk embodied in ever more … complex financial products and markets. Third, the breakdown was unpredictable and inevitable, given the “excessive” leverage … following questions: what is an optimal leverage or capital requirement that balances the expected growth against risk? What are …