MARK BARNES: Careful with that mix of debt, it could sink you
We have an irresistible propensity for borrowing more than we can afford, and we should heed warning signs
I watched The Big Short (2015), again, last weekend. It is compulsory viewing for players in the financial markets, and a wonderful exposé of the consequences of greed, ignorance and “the madness of crowds”.
China Evergrande Group, one of the biggest real estate developers of the world, is in trouble. Is it simply a consequence of too much leverage, too much debt, in markets where borrowing has been made easy, if not emptying, by the practically universal quantitative easing policies of central banks? Or has it all been precipitated by yet another (actual or anticipated) clampdown initiative against tall poppies by the Chinese government?..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.