World trade is down 20% or more. US railroad shipments are down more than 20% year-over-year. Europe's banks have been much more aggressive in funding emerging-market expansion than US or Japanese banks. Europe's banking system is in far worse shape than the US system. The losses may be bigger, and their capital to meet those losses is certainly less. Let's look at some charts. Remove sharp objects or pour another adult beverage. And Then There Was Leverage. Thirty times leverage means that if you lose 3.3%, you wipe out all your capital. Regulators in the UK allowed 20:1 leverage on...