[Locke]

When you have a club that is that leveraged it only becomes a matter of time before the bottom falls out.

I'll post more about that tomorrow, but its basic economics; while borrowing is available, the higher the degree of leverage the smaller the required shift in interest rates in order to make the borrowing prohibitively expensive.

Not to mention, you need Bank Confidence. If their confidence in the ability to repay is lost, all loans of that magnitude are 'demand' and the bank simply calls in their demand and gives an arbitrary timetable for repayment.

Its incredibly unstable.