I guess the oil and gas companies are feeling greedier today than they were 3 weeks ago when gas prices were 60 cents lower.
Via Jeffrey Friedman: a greedy banker may want to make more money than a non-greedy banker, but he doesn’t want to lose it. When you employ leverage to make huge gains, you also endure the possibility of great losses. Greed, then, should be just as likely to cause bankers to use less leverage than more. So, what does it mean when bankers increase their use of borrowed funds as opposed to equity capital to finance investments? Overconfidence.
