Videos | February 24, 2010

Lesson 1 from the financial crisis “be wary of borrowing”

ING Group chief economist Mark Cliffe argues investors should be wary of borrowing.

Cliffe says the financial crisis shows the dangers of borrowing too much. In the first instalment of a new 10 video series for eZonomics, Cliffe outlines his personal view.

Leverage cuts both ways
Cliffe argues investors should be wary of borrowing and issues a warning that very low interest rates seen in many places in the financial crisis will not last. He outlines the way leverage works and says: “The problem is that leverage cuts both ways. Just as borrowing can multiply your gains, so it multiplies your losses.”


eZonomics team
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