Videos | February 24, 2010

Lesson 1 from the financial crisis: “Be wary of borrowing”

ING Group chief economist Mark Cliffe explains why.

Cliffe says the financial crisis shows the dangers of borrowing too much. In the first instalment of a 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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