High Leverage
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 Malco TY6 High Leverage Tie Tool $41.56 Time Remaining: 25d 22h 14m Buy It Now for only: $41.56 |
 Knipex 7412180 High Leverage Diagonal Cutters Comfort Grip $68.51 Time Remaining: 27d 3h 15m Buy It Now for only: $68.51 |
 Draper Expert Knipex 83888 180 mm High Leverage Diagonal Side Cutters $54.29 Time Remaining: 27d 3h 32m Buy It Now for only: $54.29 |
 Draper Expert Knipex 80272 200 mm High Leverage Diagonal Side Cutters $59.03 Time Remaining: 27d 3h 32m Buy It Now for only: $59.03 |
 Knipex 7402200 High Leverage Diagonal Cutters Multi Component Comfort Grip $67.46 Time Remaining: 27d 3h 49m Buy It Now for only: $67.46 |
 Knipex 7401250 High Leverage Diagonal Cutters PVC Cushion Grip $71.09 Time Remaining: 27d 3h 49m Buy It Now for only: $71.09 |
 Draper Expert Knipex 49173 225 mm High Leverage Combination Pliers $61.74 Time Remaining: 27d 7h 29m Buy It Now for only: $61.74 |
 Knipex 002010 Power Pack High Leverage Plier Set 3 $124.71 Time Remaining: 27d 1h 48m Buy It Now for only: $124.71 |
 Draper Expert Knipex 44268 160 mm High Leverage Diagonal Side Cutters with Retur $62.46 Time Remaining: 27d 1h 27m Buy It Now for only: $62.46 |
 Draper 05048 220mm Expert Ergo Plus Fully Insulated High Leverage VDE Long Nose $77.63 Time Remaining: 27d 2h 45m Buy It Now for only: $77.63 |
 Draper Expert Knipex 12301 200 mm Fully Insulated High Leverage Diagonal Side Cu $85.23 Time Remaining: 4d 21h 50m Buy It Now for only: $85.23 |
 Draper 32015 180 mm VDE High Leverage Combination Pliers $53.57 Time Remaining: 7d 5h 58m Buy It Now for only: $53.57 |
 Draper 32022 160 mm VDE High Leverage Nippers $66.00 Time Remaining: 7d 5h 59m Buy It Now for only: $66.00 |
 Draper 05046 190mm Expert Ergo Plus Fully Insulated High Leverage VDE Combinatio $75.11 Time Remaining: 5d 18h 25m Buy It Now for only: $75.11 |
 Draper Expert Knipex 55522 160 mm High Leverage Diagonal Side Cutters $47.86 Time Remaining: 7d 3h 40m Buy It Now for only: $47.86 |
 Knipex 0202180 High Leverage Combination Pliers 180 mm Multi Component Grips $48.74 Time Remaining: 4d 20h 54m Buy It Now for only: $48.74 |
 Knipex 0202200 High Leverage Combination Pliers 200 mm Multi Component Grips $53.23 Time Remaining: 5d 20h 13m Buy It Now for only: $53.23 |
 Knipex 0206200 High Leverage Combination Pliers 200 mm VDE Grips $62.83 Time Remaining: 12d 20h 13m Buy It Now for only: $62.83 |
 Draper Expert Knipex 88153 200 mm High Leverage Combination Pliers $53.09 Time Remaining: 5d 18h 58m Buy It Now for only: $53.09 |
 Knipex 9914300 High Leverage Concretors Nips $65.09 Time Remaining: 12d 20h 33m Buy It Now for only: $65.09 |
 Knipex 7491250 High Leverage Centre Cutters Cushion Grip $87.40 Time Remaining: 5d 21h 6m Buy It Now for only: $87.40 |
 Knipex 7401200 High Leverage Diagonal Cutters PVC Cushion Grip $59.14 Time Remaining: 5d 20h 13m Buy It Now for only: $59.14 |
 Knipex 7402160 High Leverage Diagonal Cutters Multi Component Comfort Grip $57.69 Time Remaining: 5d 21h 6m Buy It Now for only: $57.69 |
 Knipex 7402250 High Leverage Diagonal Cutters Multi Component Comfort Grip $78.71 Time Remaining: 6d 22h 15m Buy It Now for only: $78.71 |
 Draper Expert Knipex 81709 160 mm High Leverage End Cutting Pliers $62.23 Time Remaining: 7d 3h 19m Buy It Now for only: $62.23 |
 Draper Expert Knipex 54220 200 mm Extra High Leverage End Cutting Nippers $103.83 Time Remaining: 7d 3h 40m Buy It Now for only: $103.83 |
 Draper Expert Knipex 49169 225 mm Fully Insulated High Leverage Combination Plie $75.17 Time Remaining: 4d 21h 7m Buy It Now for only: $75.17 |
 Knipex 7401180 High Leverage Diagonal Cutters PVC Cushion Grip $53.51 Time Remaining: 5d 20h 13m Buy It Now for only: $53.51 |
 Knipex 0201180 High Leverage Combination Pliers 180 mm PVC Grips $46.09 Time Remaining: 5d 20h 14m Buy It Now for only: $46.09 |
 Knipex 7401160 High Leverage Diagonal Cutters PVC Cushion Grip $49.46 Time Remaining: 6d 22h 27m Buy It Now for only: $49.46 |
 Draper Expert Knipex 49172 180 mm High Leverage Combination Pliers $49.37 Time Remaining: 7d 21h 39m Buy It Now for only: $49.37 |
 Knipex 99 14 300 High Leverage Concretors Nippers High Lever Transmission Nicke $61.71 Time Remaining: 10d 20h 53m Buy It Now for only: $61.71 |
 CK 3720 RedLine High Leverage Side Cutters 200mm $60.31 Time Remaining: 4d 20h 52m Buy It Now for only: $60.31 |
 Knipex 7406160 High Leverage Diagonal Cutting Pliers VDE Grip $70.40 Time Remaining: 4d 20h 53m Buy It Now for only: $70.40 |
 Draper Expert Knipex 31929 200 mm VDE High Leverage Nippers $71.54 Time Remaining: 7d 5h 58m Buy It Now for only: $71.54 |
 Draper Expert Knipex 31927 180 mm VDE High Leverage Nippers $66.89 Time Remaining: 7d 5h 59m Buy It Now for only: $66.89 |
 Knipex 7406180 High Leverage Diagonal Cutting Pliers VDE Grip $76.37 Time Remaining: 4d 20h 55m Buy It Now for only: $76.37 |
 Knipex 7406200 High Leverage Diagonal Cutting Pliers VDE Grip $83.74 Time Remaining: 4d 21h 29m Buy It Now for only: $83.74 |
 Draper Expert Knipex 80264 250 mm High Leverage Diagonal Side Cutters $72.37 Time Remaining: 7d 3h 19m Buy It Now for only: $72.37 |
 Draper Expert Knipex 34605 250 mm High Leverage Diagonal Side Cutters with 12 De $82.86 Time Remaining: 7d 56m Buy It Now for only: $82.86 |
 Draper Expert Knipex 59818 200 mm Fully Insulated High Leverage Combination Plie $68.17 Time Remaining: 10d 21h 13m Buy It Now for only: $68.17 |
 Draper Expert Knipex 49168 180 mm Fully Insulated High Leverage Combination Plie $65.09 Time Remaining: 4d 21h 7m Buy It Now for only: $65.09 |
 Draper Expert Knipex 88145 200 mm High Leverage Diagonal Side Cutters with Comfo $65.09 Time Remaining: 4d 21h 51m Buy It Now for only: $65.09 |
 Draper Expert Knipex 18476 250 mm High Leverage Heavy Duty Centre Cutters $88.89 Time Remaining: 5d 19h 49m Buy It Now for only: $88.89 |
 Draper Expert Knipex 78428 200 mm High Leverage Diagonal Side Cutters with 12 De $67.37 Time Remaining: 6d 23h 20m Buy It Now for only: $67.37 |
High Leverage
High Leverage for the American Homeowner
The housing industry in the US has taken a dramatic downturn over the past few years. We are a society that is based on credit and debt; which has finally caught up to some of us. Individuals look at the government with their overspending and trillions of dollars in debt and think, “I guess I can do that too!” Well as we have seen in recent years while the government is able to continue to borrow Tuesday for a hamburger today, it does not work that way for the individual family.
In the beginning of this decade, and for years before then, many people were being allowed to buy houses with little or no money down, sometime unemployed, and without th full understanding of what they were getting into. I am not excusing those people that got into these mortgages without really understanding them; but that is another issue of proper education that can be discussed in another article. What I want to focus on is the issues of homeowner debt and the costs involved in owning a home.
When a family buys a house without putting any money down, it puts them in a situation called high financial leverage. This means that their ratio of debt to equity falls heavily on the debt side. For example if I just bought a house with no money down and took out a mortgage of $300,000 to buy that house, my debt (mortgage) to equity (nothing) ratio is weighted entirely on the debt side. This puts families in extreme risk because they may have enough equity to their debt, should something happen to their cash flow, like losing their job for example. Should they be unable to continue to make payments on their house, as many families have experience in recent years; the banks will end up reposing their homes, as many banks have done in recent years. The worst case scenario would be that families have to declare bankruptcy because they bought a house without a substantial amount of equity which put them in high financial leverage, and that in turn caused them to be in what is called high operating leverage.
Operating leverage is the ratio of fixed costs to total costs. High operating leverage would mean that you total cost is made up of mostly you fixed costs. The reason this occurs is because families have been buys houses that are beyond their means with the expectation that the value of their home will increase and they will be able to sell it in a few years for a profit. That has not been the case over the past few years. Values have plummeted, but the mortgages have remained the same; so families have ended up have to make mortgage payments that exceeds the value of their homes.
This combination of high operating and financial leverage has been the largest contributing factor to the widespread and growing foreclosure rate in America. Sure it dropped for a bit, but foreclosures are on the rise even though we are being told the economy is pulling out of the recession. Unfortunately for those people who have lost their jobs, and their houses in the process, will have to wait a while until things get better. This is because unemployment is a lagging indicator of the economy, meaning that even though the economy is getting better, employers will not be hiring like they used to for a while because the increase in sales for businesses has not yet been realized.
Regrettably it will be years until we will all be able to recover and look back to really see what went wrong. I just hope that my children will be able to live in an economy that is strong, stable, and will be forced to buy a house with a down payment.
About the Author
Does high leverage equal high drawdowns when trading?
How do I minimize high drawdowns when trading forex I already know about stop loss but what does leverage have to do with drawdowns?
Leverage and drawdown size are directly related. Double your leverage, double your drawdown size.
US NFA Forex Regulations, Forex Strategy for Maintaining High Leverage