Growth based on high leverage typically proves to be illusory.

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

Leverage is one of the worst.

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

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

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

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

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

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

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

If implemented, his innovative idea would reduce homeowners leverage.

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

If one assumes greater leverage for private sector investment, the number would be higher.

With global growth anemic and inflationary expectations falling, further growth in debt looks unsustainable. And yet total global leverage continues to rise.

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

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

The Commission shall adopt implementing measures further specifying the circumstances in which an AIF shall be deemed to employ high levels of leverage on a systematic basis .

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

In particular, we understood that the rapid run up of house prices, coupled with the extension of leverage, posed macroeconomic dangers.

To be sure, this could weaken a debtor s leverage the promise of future repayment in bringing creditors back to the negotiating table.

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 .

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.

Painful deleveraging less spending and more saving to reduce debt and leverage remains ongoing in most advanced economies, which implies slow economic growth.

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.

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.

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

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

Making matters worse, China's local government financing model could hardly be more effective at producing overinvestment and excessive leverage.

The Basel 3 Accord, adherence to which increased the liquidity of all banks and decreased their leverage, is viewed as a firm standard in some parts of the world.

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

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

The key is to lower interest rates enough to mitigate the financial risks of high leverage and enable the restructuring of local government debts.

The people who run big banks like leverage More borrowed money (and less of their own) means that they get more upside, in the sense of a higher return on capital, unadjusted for risk.

One is that, facing declining growth, policymakers will resort to excess investment or leverage (or both), creating instability.

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.

Some were fairly obvious Larger loans and higher leverage ratios contribute to higher rates of NPLs.

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

And I learned about profit and revenue, about leverage, all sorts of things, from farmers, from seamstresses, from goat herders.

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.

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 .

The Office of Budget Responsibility suggests, meanwhile, that robust growth will be possible only if household leverage, having fallen slightly since 2008, rises to an all time high by 2020.

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).

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.