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Tag Archive: understanding how banks use leveraging and hypothecation

What Does Hypothecation Mean In Regards To Banking?

What Does Hypothecation Mean In Regards To Banking?

I am always shocked at the lack of education that American’s have in regards to how banks work.  When I talk to people about the financial crisis of 2008 in regards to the out of control leveraging that many of the country’s largest banks partook in, most consumers look at me with a confused look.  I think many of them would rather just keep going to the ATM and be content that it spits out cash at them.  But understanding how banks leverage your money...

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