Leverage is one of the worst.

Growth based on high leverage typically proves to be illusory.

For example, if companies reduce investment, they will weaken growth and boost their leverage ratio further.

If implemented, his innovative idea would reduce homeowners leverage.

The ECB acknowledges that leverage can create important risks for financial stability .

And you know, when you give to a nonprofit, you might have 50 cents on the dollar.

And, with the corporate sector already overleveraged, a broad based expansion of credit is not safe.

Leverage shifted not only from private to public sectors, but also among countries.

If the economy as a whole desires to leverage up, the result is an inflationary boom.

But it's also, of course, to do with the massive crisis that followed excessive leverage, excessive borrowing in the private sector.

We need to stimulate growth and increase inflation without generating higher private or public leverage.

It seems unlikely that not a single central bank analyst was the least bit worried about the massive growth in credit and leverage at the time.

Significantly, it does next to nothing to alleviate the twin problems of excess leverage and inadequate saving.

For starters, no one knows at what corporate leverage ratio a crisis will be triggered.

The concept of leverage is fundamental to the business model implemented by many AIFMs .

Higher leverage creates macroeconomic risk not least for fiscal balances when implicit guarantees must be honored.

Moreover, the relative increase in debt (leverage) in the financial system was similar on both sides of the Atlantic.

Specifically, China needs prudential regulation that limits the use of leverage for asset purchases.

Economists who insist that China s financial leverage is not too high are a dwindling minority.

Overall emerging market debt has grown from 114 to 151 of GDP, and total global leverage is 37 higher than it was in 2008.

Bankers want to be so highly leveraged for a simple reason implicit government guarantees mean that they get the upside when things go well, while the downside is someone else s problem.

Consider China s high leverage ratio, which many argue will be a key factor in causing a crisis.

The single market also provides a platform and leverage to export goods and services to international markets.

The main argument is that high leverage contributes powerfully to systemic risk a condition in which asset prices move in a highly correlated way, and distress, when it occurs, spreads quickly. Leverage is also partially caused by misperceptions of risk and mispricing of liquidity.  It is desirable to constrain leverage, but not to the point of increasing the cost of capital and investment.

In such economies, that pattern not only typically depended on leverage it also enlarged the non tradable side of the economy and shrank the tradable side.

But Germany has all of the leverage it needs to implement the stability oriented reforms that it wants for Europe.

As a result, by 2010, China s overall leverage ratio had risen by 30 .

1 An increase in the leverage of a corporation reduces its capital buffer to fluctuations in income and , hence , its future earnings tend to be more uncertain .

If it is supported by excessive leverage, effectively shifting future consumption to the present, China could face a significant slowdown or even a major crisis.

Thanks in part to research by Reinhart and Rogoff, we know that excessive leverage is unsustainable, and that restoring balance takes time.

Over the medium term, according to Wolf, countries need to put in place regulatory measures that lower debt levels and discourage overleveraging.

LONDON The Great Recession of 2008 2009 was triggered by excessive debt accumulation and leverage on the part of households, financial institutions, and even the corporate sector in many advanced economies.

As a result, the PBOC is losing control over interest rates on corporate loans, and thus has few options for constraining leverage ratios.

In 2008, it was a combination of exploding asset prices and excessive household sector leverage that fueled the global financial crisis.

Fueled by massive credit growth (equivalent to 30 of GDP from 2008 to 2012), the Chinese economy has taken on a level of financial leverage that is the highest among emerging markets.

If you put up a prize, you can get literally a 50 to one leverage on your dollars.

The first round of fiscal stimulus, supported by credit easing, led local governments and the financial sector to increase their leverage ratios.

Article 25 ( 3 ) of the proposed directive provides that the Commission shall adopt implementing measures setting limits on the level of leverage that AIFMs can employ , taking into account , inter alia , the type of AIF , its investment strategy and the sources of leverage .

Another similarity is the accumulation of debt within the corporate sector. Corporate leverage in China rose from 2.4 times equity in 2007 to 3.5 times last year well above American and European levels.

Moreover, the build up of risk in the financial system that accompanies higher leverage is both hard to measure and likely to materialize only after a few years (for example, after a governor s term of office has expired).

Each crisis hit economy had increased its financial leverage the ratio of domestic credit to GDP by 30 percentage points over five years shortly before their credit bubbles popped.

Not only are they untested, but restricting leverage in some parts of the banking system would merely cause the liquidity from zero rates to flow to other parts of it, while trying to restrict leverage entirely would simply drive the liquidity into the less regulated shadow banking system.

Leverage is increasing, with some 57 trillion having piled up worldwide since the global financial crisis began.

Certainly the People s Bank of China, which engineered a credit squeeze in June in an attempt to discourage loan growth, seems to believe that financial leverage has risen to dangerous levels.

Seven years after 2008, global leverage is higher than ever, and aggregate global demand is still insufficient to drive robust growth.