A short conversational transcript excerpt discussing market leverage cycles: participants describe markets as engines that build leverage and subsequently deleverage, producing sizable corrections (e.g., a 40% correction). The excerpt captures an exchange about systemic leverage-driven volatility and a brief directive to "take it out."
The market is a leverage deleveraging engine. That's what it is, a leverage build up. Deleverage leverage. Deleverage leverage.
Yeah, that's right. I mean, you get, you get a 40 correction because there's enough leverage in the market for that to happen.
Take it out.
Without that, you start to see an environment that is significantly less volatile. Right. So, you know, I think that's another thing where, like, if we're going to talk about maybe forget cycle theory, I think I like the word bubbles more because if we're going to talk about bubbles, really, if there's the offering of leverage that exists, I just can't see how we don't have bubbles, you know, just seems. Yeah, I agree. Thank God. To believe that.
