Law Of Leverage Quotes

When you lived on the wrong side of the law, information, however vague or apparently meaningless, was everything. It gave you leverage. And leverage was power.

The more leeches there are affixed to a host, the less resources there are to siphon from said hosts, per parasite. The ability to only absorb energy, without the ability or desire to reproduce it in a productive manner, is a dangerous, unsustainable, albeit attractive long term method of collapse and decline.

I argue that his approach to batching helps explain this paradox. In particular, by consolidating his work into intense and uninterrupted pulses, he’s leveraging the following law of productivity: High-Quality Work Produced = (Time Spent) x (Intensity of Focus)

You think we're going to turn you over to the law?" he said. "Oh, no, we're much more dangerous than that.

Leaders see everything with a leadership bias. Their focus is on mobilizing people and leveraging resources to achieve their goals rather than on using their own individual efforts. Leaders who want to succeed maximize every asset and resource they have for the benefit of their organization. For that reason, they are continually aware of what they have at their disposal.

Learn to leverage the Law of Cause and Effect to your advantage in positive ways!

From this irritating reality comes The First Law of Corporate Survival for ambitious CEOs who pile on leverage and run large and unfathomable derivatives books: Modest incompetence simply won’t do; it’s mindboggling screw-ups that are required.

Law of the Universe: Nothing happens until something moves. Law of Business: Nothing happens until someone sells something. —Jeb Blount

You are in charge of your emotions, your thoughts, your reactions, and your decisions. It’s the law of personal responsibility, because everyone is responsible for leading something, even if that something is just you.

Overcoming doesn't work. There is a universal law of human behavior: You cannot argue another person into believing that they are wrong. The more you push another person, the more they dig their heels in and resist you.

Over the last few decades, that America of old had been stolen, snatched up by nanny state, soft-headed do-gooders on the left and wealth-obsessed sociopaths on the right who clearly believed their money meant they belonged to a superior species. They'd leveraged that money to make the laws reflect their first-class status.

In some cases, these liberal “progressives” show contempt for their fellow Americans who are lower class, poorly educated, sinking economically—and white. White male privilege is real, but that phrase probably mystifies a fifty-nine-year-old Walmart greeter in southern Ohio. A study by two Princeton researchers shows widespread despair among poor whites that often feeds bigotry, misplaced anger, and the racism that Donald Trump leveraged to his political advantage.15 Apparently, white racism trumps common sense, or even political self-interest in evaluating the fitness for public office of a man like Trump. Carol Anderson documents the unspoken but devastatingly effective strategy of the Republican Party (which I witnessed firsthand in North Carolina) to work white rage through passage of laws that have disadvantaged black Americans.

What a good government does, what a republic does, is moderate competition; allow the tug of war, but never let one side walk away with the rope. They also establish rule of law, and a safety net below which people cannot fall. Everybody can vote, everybody can share power, no matter how rich or poor. Everybody has rights, and the republic is strong enough to enforce those rights. Police, health, mail, education, the things that everybody needs are guaranteed. Corporations can compete, but they are kept reasonably honest and not allowed to over leverage and risk people other than themselves. People will abuse the system, some corps will get away with crime, but the distribution of a minimum amount of power and resources to all people hedges the damage. And it forces the wealthy, not to be slaves to the poor, but to have a modicum of concern for them, because they can vote.

But derivatives did create new dangers. If you were making a loan, and you were confident you could hedge some of the credit risk of that loan, you might be tempted to make a larger and riskier loan. And the instruments themselves often had leverage embedded in them, so investors could be exposed to greater losses than they realized. Firms weren’t required by law to post any collateral (or “margin”) to make derivatives trades, and the market wasn’t requiring them to post much, either. This meant fewer shock absorbers for the system if those trades went bad. That’s why Warren Buffett had called derivatives “financial weapons of mass destruction.

Everything that is wrong with the inner cities of America that policy can affect, Democrats are responsible for: every killing field; every school that year in and year out fails to teach its children the basic skills they need to get ahead; every school that fails to graduate 30 to 40 percent of its charges while those who do get degrees are often functionally illiterate; every welfare system that promotes dependency, condemning its recipients to lifetimes of destitution; every gun-control law that disarms law-abiding citizens in high-crime areas and leaves them defenseless against predators; every catch-and-release policy that puts violent criminals back on the streets; every regulation that ties the hands of police; every material and moral support provided to antipolice agitators like Black Lives Matter, who incite violence against the only protection inner-city families have; every onerous regulation and corporate tax that drives businesses and jobs out of inner-city neighborhoods; every rhetorical assault that tars Democrats’ opponents as “racists” and “race traitors,” perpetuating a one-party system that denies inner-city inhabitants the leverage and influence of a two-party system. Democrats are responsible for every one of the shackles on inner-city communities, and they have been for 50 to 100 years. What

Rincewind agreed moodily. He tried to explain that magic had indeed once been wild and lawless, but had been tamed back in the mists of time by the Olden Ones, who had bound it to obey among other things the Law of Conservation of Reality; this demanded that the effort needed to achieve a goal should be the same regardless of the means used. In practical terms this meant that, say, creating the illusion of a glass of wine was relatively easy, since it involved merely the subtle shifting of light patterns. On the other hand, lifting a genuine wineglass a few feet in the air by sheer mental energy required several hours of systematic preparation if the wizard wished to prevent the simple principle of leverage flicking his brain out through his ears.

If your team is not working, then you WORK. It is a simple and working antidote to success in network marketing!

Because of legal expansions in corporate rights and changes in corporate social practice, the most powerful people in the world in many contexts are corporations and the people who run them. Corporations are like superheroes (or supervillains) in many ways. They possess a (liability) shield, never die, leverage the powers of others as their own, and move the world through their actions.

All of us, regardless of the work we're doing for business, get to teach God's ways and His laws, His truths to other people.

Law firms that fail to leverage lawyer SEO to get new cases will experience fewer leads and a higher cost per acquisition than their more savvy competitors. Lawful SEO knows that many law firms struggle with not being ranked in Google and having enough new cases each month to cover their nut. Book a call and speak to a 15-year SEO consultant who has helped hundreds of law firm websites get ranked in Google so we can reduce your stress, increase your ROI, and position yourself for future growth.

There is an entire psychological substructure that, due to the fall, is a near-constant manufacturing of relational leveraging, fear-stuffing, nervousness, score-keeping, neurotic controlling, anxiety-festering silliness that is not something we say or even think so much as something we exhale. You can smell it on people, though some of us are good at hiding it. And if you trace this fountain of scurrying haste, in all its various manifestations, down to the root, you don’t find childhood difficulties or a Myers-Briggs diagnosis or Freudian impulses. You find gospel deficit. You find lack of felt awareness of Christ’s heart. All the worry and dysfunction and resentment are the natural fruit of living in a mental universe of law. The felt love of Christ really is what brings rest, wholeness, flourishing, shalom—that existential calm that for brief, gospel-sane moments settles over you and lets you step in out of the storm of of-works-ness.

Our law firm was founded on the principles of efficiency, fiscal responsibility, and collaboration. We know that time is money and we take our commitment to efficiency very seriously. While our qualifications, experience, and technology are comparable to that of our large firm counterparts, we deliver value by keeping our overhead low and by leveraging technology, including the latest document management software to allow our lawyers to collaborate seamlessly. Passing the cost saving on to you.

The great virtue of hunter-gatherer societies around the world was that, although leaders understandably had more prestige than other people, they didn't have more rights. Unlike European monarchs, they could not leverage their power to gain access to wealth and resources, and they could not skirt the rules and laws that governed everybody else. Christianity was a high moral system based on the preaching of a destitute ascetic, but it somehow became the dominant faith of a medieval society where kings could commit murder without consequences and the powerful could rape, steal, and plunder even among their own.

David had made a fortune apparently by leveraging his father-in-law’s connections.

Your Competition Has Network Effects, Too To figure out a response, it’s important to acknowledge a common myth about defensibility and moats: that somehow, network effects will magically help you fend off competition. This is a myth repeated again and again in startup pitch presentations to investors and entrepreneurs. It’s a lie that entrepreneurs tell to themselves. It isn’t true—simply having network effects is not enough, because if your product has them, it’s likely that your competitors have them, too. Whether you are a marketplace, social network, workplace collaboration tool, or app store, you are in a “networked category.” It’s intrinsic in these categories that every player is a multi-sided network that connects people, and is governed under the dynamics of Cold Start Theory. Effective competitive strategy is about who scales and leverages their network effects in the best way possible. No wonder we often see smaller players upend larger ones, in an apparent violation of Metcalfe’s Law. If every product in a category can rely on their network, then it’s not about who’s initially the largest. Instead, the question is, who is doing the best job amplifying and scaling their Acquisition, Engagement, and Economic effects. It’s what we see repeatedly over time: MySpace was the biggest social network in the mid-2000s and lost to Facebook, then a smaller, newer entrant with a focus on college networks with stronger product execution. HipChat was ahead in workplace communication, but was upended by Slack. Grubhub created a successful, profitable multibillion-dollar food-ordering company, but has rapidly lost ground to Uber Eats and DoorDash.

isolation until he completes the task at hand. My guess is that Adam Grant doesn’t work substantially more hours than the average professor at an elite research institution (generally speaking, this is a group prone to workaholism), but he still manages to produce more than just about anyone else in his field. I argue that his approach to batching helps explain this paradox. In particular, by consolidating his work into intense and uninterrupted pulses, he’s leveraging the following law of productivity: High-Quality Work Produced = (Time Spent) x (Intensity of Focus)

Perhaps the best known of these training programs is Operation Pipeline. The DEA launched Operation Pipeline in 1984 as part of the Reagan administration’s rollout of the War on Drugs. The federal program, administered by over three hundred state and local law enforcement agencies, trains state and local law enforcement officers to use pretextual traffic stops and consent searches on a large scale for drug interdiction. Officers learn, among other things, how to use a minor traffic violation as a pretext to stop someone, how to lengthen a routine traffic stop and leverage it into a search for drugs, how to obtain consent from a reluctant motorist, and how to use drug-sniffing dogs to obtain probable cause.23 By 2000, the DEA had directly trained more than 25,000 officers in forty-eight states in Pipeline tactics and helped to develop training programs for countless municipal and state law enforcement agencies.

Think Iconic. Even if you’re not in the marketing biz, it will serve you well to crystallize your thinking by leveraging an image that can symbolize your idea, or the spirit of it. And if you are in the marketing business, you’re simply required by law to think this way. Whatever presentations you make, whatever products you sell, whomever you’re trying to convince—never forget the power of an image to galvanize your audience. Note that there’s a big difference between finding a great image and decorating a PowerPoint presentation. There’s too much decorating in the world already, and for the most part it’s meaningless. Find a conceptual image that actually captures the essence of your idea. Be simple and be strong. The same principle applies whether you’re talking to colleagues or to the public. Over time, a conceptual image gives people an easy way to identify your company, your idea or your product. Memorable images often communicate more effectively than words—which is why those who value Simplicity tend to rely on them.

I was reminded once again that for Wen and the rest of China’s leaders, foreign policy remained purely transactional. How much they gave and how much they got would depend not on abstract principles of international law but on their assessment of the other side’s power and leverage. Where they met no resistance, they’d keep on taking.

My guess is that Adam Grant doesn’t work substantially more hours than the average professor at an elite research institution (generally speaking, this is a group prone to workaholism), but he still manages to produce more than just about anyone else in his field. I argue that his approach to batching helps explain this paradox. In particular, by consolidating his work into intense and uninterrupted pulses, he’s leveraging the following law of productivity: High-Quality Work Produced = (Time Spent) x (Intensity of Focus)

the most effective way to leverage health and longevity was to disrupt this cultural shame pattern around rest, give myself and my patients permission to recover, and return to basic laws of nature.

On the job training and experience is often stated as “the way” to learn the job of policing. What does this mean to us cops? Does it mean with time on the job we’ll get better at what we do, automatically, or magically from working shift after shift and handling call after call? Every time we race to the scene and charge towards the sounds of danger and come out safe with suspect in custody, mean that we have somehow gotten better just by being there and participating in the dangerous encounter? Or is there something more to this concept of “on the job training” we should be doing to leverage every experience no matter how small or big to improve our performance? When I think of on the job training I do not envision an environment where you show up for work and fly by the seat of your pants and hope things work out as you think they should. No, what I envision by on the job training is that you learn from every experience and focus on leveraging the lessons learned to make you better at the job. Law enforcement officers are members of a profession that does not routinely practice its tactical skills. Only constant violent conflict and violent crime, a condition to objectionable, to even contemplate, would allow such practice. Thus the honing and developing of law enforcement peacekeeping skills must be achieved in other ways.

In my case, with my law degree, I was able to be an investment banker, in-house counsel, op-ed columnist, and author. No other degree except for the JD offers so many possibilities. More than knowing the law, the JD degree gives you a more invaluable skill set—the ability to think in a structured way to get to a solution. This type of skill set can be leveraged in almost any field. The only limit is your imagination.

Which lawyer drafts the contract is often dictated by custom: financing agreements are drafted by lenders’ counsel; acquisition agreements are drafted by purchaser’s counsel; underwriting agreements are drafted by underwriter’s counsel; employment contracts are drafted by employers’ counsel; security agreements are drafted by secured party’s counsel. The underlying principle is that the party with the most leverage or with the most to lose from an inadequately drafted contract will do the drafting.

argue that his approach to batching helps explain this paradox. In particular, by consolidating his work into intense and uninterrupted pulses, he’s leveraging the following law of productivity: High-Quality Work Produced = (Time Spent) x (Intensity of Focus) If you believe this formula, then Grant’s habits make sense: By maximizing his intensity when he works, he maximizes the results he produces per unit of time spent working.

You will leverage everything. And in doing so you will lose everything, and in doing so you will also win everything. This will be the most exhilarating time of your life and it will also be the darkest. You will know beyond the shadow of doubt what possibility really is; you will wonder about things you don't want to wonder about; you will find you are largely alone and powerless; you will find you were never completely alone at all.

you’ll see each fetus wizen up inside its fertile womb. Yet drip it into the veins of Congress or a Corporation, just watch those Mountain Men outwrestle steers, gulping their liquid god go wildly enthusiastic so they can write laws in stone with one hand while joysticking lovers with the other, sacking Montana and out-dunking Jordan, out-leveraging—who was it, Archimedes, popped the world’s blue eyeball into a Swiss snowbank? See, ghettoites, how sociable our masters are, these Bacchanalians, never alcoholic, immune in suburbs where bad sex has died and gone to heaven, no AIDS, no illegitimate children, all the schools have classic curricula and every personal fetus will be delivered right on time, uncorked like Chateauneuf du Pape, unscrewed like Southern Comfort to gurgle on its snowy tablecloth, caress with rosy fingers its parents’ egos and become a tax loophole. Classic, ah Classic these Metamorphoses

Set the table: Decide exactly what you want. Clarity is essential. Write out your goals and objectives before you begin. Plan every day in advance: Think on paper. Every minute you spend in planning can save you five or ten minutes in execution. Apply the 80/20 Rule to everything: Twenty percent of your activities will account for 80 percent of your results. Always concentrate your efforts on that top 20 percent. Consider the consequences: Your most important tasks and priorities are those that can have the most serious consequences, positive or negative, on your life or work. Focus on these above all else. Practice creative procrastination: Since you can't do everything, you must learn to deliberately put off those tasks that are of low value so that you have enough time to do the few things that really count. Use the ABCDE Method continually: Before you begin work on a list of tasks, take a few moments to organize them by value and priority so you can be sure of working on your most important activities. Focus on key result areas: Identify and determine those results that you absolutely, positively have to get to do your job well, and work on them all day long. The Law of Three: Identify the three things you do in your work that account for 90 percent of your contribution, and focus on getting them done before anything else. You will then have more time for your family and personal life. Prepare thoroughly before you begin: Have everything you need at hand before you start. Assemble all the papers, information, tools, work materials, and numbers you might require so that you can get started and keep going. Take it one oil barrel at a time: You can accomplish the biggest and most complicated job if you just complete it one step at a time. Upgrade your key skills: The more knowledgeable and skilled you become at your key tasks, the faster you start them and the sooner you get them done. Leverage your special talents: Determine exactly what it is that you are very good at doing, or could be very good at, and throw your whole heart into doing those specific things very, very well. Identify your key constraints: Determine the bottlenecks or choke points, internal or external, that set the speed at which you achieve your most important goals, and focus on alleviating them. Put the pressure on yourself: Imagine that you have to leave town for a month, and work as if you had to get all your major tasks completed before you left. Maximize your personal power: Identify your periods of highest mental and physical energy each day, and structure your most important and demanding tasks around these times. Get lots of rest so you can perform at your best. Motivate yourself into action: Be your own cheerleader. Look for the good in every situation. Focus on the solution rather than the problem. Always be optimistic and constructive. Get out of the technological time sinks: Use technology to improve the quality of your communications, but do not allow yourself to become a slave to it. Learn to occasionally turn things off and leave them off. Slice and dice the task: Break large, complex tasks down into bite-sized pieces, and then do just one small part of the task to get started. Create large chunks of time: Organize your days around large blocks of time where you can concentrate for extended periods on your most important tasks. Develop a sense of urgency: Make a habit of moving fast on your key tasks. Become known as a person who does things quickly and well. Single handle every task: Set clear priorities, start immediately on your most important task, and then work without stopping until the job is 100 percent complete. This is the real key to high performance and maximum personal productivity.

As demand for cotton grew, slavery was considered indispensable as a means of maximizing profit for this labor-intensive staple crop. Equally important, as we shall see, slaves could be financed—that is, purchased on credit. In financial parlance this is called leverage. Planters had one objective: increased cotton production. Arguments about the optimum size of a cotton farm are irrelevant because of slavery’s financing characteristic. Simply put, the goal was more cotton, which called for financing the purchase of more land and more slaves. Because a mechanical means of solving cotton’s production needs did not exist until the mid-twentieth century, cotton demanded an endless supply of black bodies as long as the price of cotton permitted financing. The Northerner Frederick Law Olmsted,

As demand for cotton grew, slavery was considered indispensable as a means of maximizing profit for this labor-intensive staple crop. Equally important, as we shall see, slaves could be financed—that is, purchased on credit. In financial parlance this is called leverage. Planters had one objective: increased cotton production. Arguments about the optimum size of a cotton farm are irrelevant because of slavery’s financing characteristic. Simply put, the goal was more cotton, which called for financing the purchase of more land and more slaves. Because a mechanical means of solving cotton’s production needs did not exist until the mid-twentieth century, cotton demanded an endless supply of black bodies as long as the price of cotton permitted financing. The Northerner Frederick Law Olmsted, author of The Cotton Kingdom (1861), attributed slavery’s growth to cotton production that had

Le Pen’s recipe for success was closely watched by fearful French democrats as well as by his emulators abroad. The FN focused intensely on the immigrant issue, and its ramifying related issues of employment, law and order, and cultural defense. It managed to bundle together a variety of constituencies and positioned itself to become a broad catch-all party of protest. It refrained from appearing to threaten democracy directly. When it won control of three important cities in southern France in 1995 and another in 1997, as well as 273 seats in regional legislatures in 1998, it acquired a capacity to reward its militants with office and force mainstream parties to treat with it. While there seemed little likelihood of its winning a national majority, the FN forced mainstream conservative parties to adopt some of its positions in order to hold on to crucial voters. The FN’s strategic leverage became so important in some southern and eastern localities that some conservatives with narrow margins allied with it in the local elections of 1995 and 2001 as the only way to defeat the Left. These successes at bundling constituencies, gratifying the ambitious, and forcing mainstream politicians into alliances moved the FN firmly into the process of taking root—Stage Two. In December 1998, however, a quarrel between Le Pen and his heir apparent, Bruno Mégret, divided the movement and drove its vote back down below 10 percent. Despite this setback, Le Pen rode a groundswell of resentment against immigrants, street crime, and globalization back to a shocking second-place 17 percent in the first round of the presidential elections of April 2002. In the runoff with incumbent president Jacques Chirac, however, Le Pen was held to 19 percent by a groundswell of French revulsion

To go back to the game metaphor from before, there exists a component of storytelling where it is you and the reader (or viewer, or whoever) sitting on opposite sides of a chessboard. You’re always trying to outwit each other. And sometimes you need them to outwit you—the audience needs that power, needs to be invested. They want to do work, and they want (sometimes) to be victorious. Other times, they want the shock of loss, the joy at being outplayed. And at those times you misdirect and distract, and as they’re thinking you’re moving your piece one way, you move it another and shock them with your prowess. But the trick is making all of this organic. It has to unfold naturally from the story—it’s not JUST you screwing with them. It’s you fucking with them within a framework that you built and agreed upon, a framework you’ve shown them, a place of rules and decorum. In this context, consider the game space. Like, say, a chessboard, or a D&D dungeon. The game space is an agreed-upon demesne. It has rules. It has squares. Each piece or character moves accordingly within those squares. It has a framework that everyone who has played the game understands. And yet, the outcome is never decided. The game is forever uncertain even within established parameters. Surprises occur. You might win. Maybe I win. That’s how storytelling operates best—we set up rules and a storyworld and characters, and you try to guess what we’re going to do with them. We as storytellers shouldn’t ever break the rules. Note: Breaking the rules in this context might mean conveniently leaving out a crucial storyworld rule (“Oh, vampires don’t have to drink blood; they can drink Kool-Aid”), or solving a mystery with a killer who the audience couldn’t ever have guessed (“It was the sheriff from two towns over who we have never before discussed or even mentioned”), or invoking a deus ex machina (“Don’t worry, giant eagles will save them. It’s cool”). You can still have chaos and uncertainty within the parameters—creating a framework, like building a house, doesn’t mean it cannot contain secrets and surprises—but you stay within the parameters that you created. Again, it’s why stage magic works as a metaphor when actual wizard magic does not. With stage magic—tricks and illusions!—you can’t really violate the laws of reality. But it damn sure feels like you do. Stories make you believe in wizard magic, but really it’s just a clever, artful trick. The storyworld is bent and twisted, but never broken. And, of course, your greatest touchstone for all of this is the characters, and their problems and places inside the storyworld. The characters will forever be your guide, if you let them. They are the tug-of-war rope, the chess pieces, the D&D characters that exist as a connection between you and the audience. They are your glorious leverage.

Design matters a lot when it is leveraged with a deep understanding of computation and the unique set of possibilities it brings.

The lesson the Law of Replacement teaches is that you must constantly be pushing new opportunities into your pipeline so that you're replacing the opportunities that will naturally fall out. And, you must do so at a rate that matches or exceeds your closing ratio. This is where a fanatical prospecting mindset really begins to pay off.

Recent U.S. foreign policy has done more than simply allow these dangerous forces to multiply and to gain control of an increasingly unstable Middle East. It has also actively compounded the problem through the disastrous Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action.53 The JCPOA, announced in 2015, came about after years of negotiations between Iran and the United States, the United Kingdom, France, Russia, China, and Germany, the so-called P5+1.54 President Obama entered office wanting to negotiate with Iran, making clear he was willing to do whatever it took. As soon as the Obama administration sent senior advisor Valerie Jarrett to negotiate through back channels, Iran knew how desperate the Obama administration was. The Iranians sensed this desperation, which allowed them to get everything they wanted while giving up virtually nothing in return. The deal completely capitulates to Iran, providing very broad relief from existing sanctions in coming years as well as the ability to recover billions of dollars’ worth of hard currency presently frozen abroad in foreign banks.55 Frozen Iranian assets based in the United States, including oil, petrochemical, and investment companies, will also be lifted.56 Estimates suggest that loosening sanctions will provide Iran up to $150 billion in assets currently tied up.57 That’s billions to terrorists around the world who hate America. That’s billions to President Assad in Syria to kill his own citizens and use chemical weapons on children. That’s billions to Hamas to launch rockets toward innocent Israeli civilians. That’s billions to Hezbollah. That’s billions in payments to Russia for weapons that violate international sanctions, money that Russia can, in violation of international law, use to attack its neighbors. What has Iran promised the United States and the world in return? Iran has agreed to relax its uranium enrichment efforts and repurpose some of its nuclear facilities for peaceful operations.58 Yet there is considerable fear that Iran will leverage the removal of trade restrictions and the $150 billion it is receiving to build nuclear weapons and to support terrorism worldwide.

The Global Financial Crisis of 2007–08 represented the greatest financial downswing of my lifetime, and consequently it presents the best opportunity to observe, reflect and learn. The scene was set for its occurrence by a number of developments. Here’s a partial list: Government policies supported an expansion of home ownership—which by definition meant the inclusion of people who historically couldn’t afford to buy homes—at a time when home prices were soaring; The Fed pushed interest rates down, causing the demand for higher-yielding instruments such as structured/levered mortgage securities to increase; There was a rising trend among banks to make mortgage loans, package them and sell them onward (as opposed to retaining them); Decisions to lend, structure, assign credit ratings and invest were made on the basis of unquestioning extrapolation of low historic mortgage default rates; The above four points resulted in an increased eagerness to extend mortgage loans, with an accompanying decline in lending standards; Novel and untested mortgage backed securities were developed that promised high returns with low risk, something that has great appeal in non-skeptical times; Protective laws and regulations were relaxed, such as the Glass-Steagall Act (which prohibited the creation of financial conglomerates), the uptick rule (which prevented traders who had bet against stocks from forcing them down through non-stop short selling), and the rules that limited banks’ leverage, permitting it to nearly triple; Finally, the media ran articles stating that risk had been eliminated by the combination of: the adroit Fed, which could be counted on to inject stimulus whenever economic sluggishness developed, confidence that the excess liquidity flowing to China for its exports and to oil producers would never fail to be recycled back into our markets, buoying asset prices, and the new Wall Street innovations, which “sliced and diced” risk so finely, spread it so widely and placed it with those best suited to bear it.

Since 1789, the secretary of state had been authorized to negotiate contracts with three newspapers in every state to print any laws that Congress had enacted. This power granted Adams unparalleled leverage over dozens of editors across the nation;