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It then becomes easier to borrow to buy homes, which pushes prices even higher.
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As Clunie points out, during bull runs companies find it easy to borrow to acquire other companies – known as leveraging.
And those calculations assume that it is as easy to borrow to finance a nuclear plant, with all its uncertainties and regulatory risk, as it is to finance a gas plant, which is probably unrealistic.Step on the gasIn eastern Europe, where Russian dominance of gas markets is a political issue and electricity markets are still quite regulated, governments may consider such a differential acceptable.
Loans list the annual limit as the award amount, without any indication that the family can choose to borrow less, making it too easy to borrow to the limit.
The faster debts are cut, the easier it will be for governments to borrow to ward off disaster.
Japanese banks soon found it easier to borrow and became more willing to lend.
"It's a whole lot easier to borrow a story than to think up your own".
"After all, cheap money makes it easier to borrow than to save, easier to spend than to tax, easier to remain the same than to change," the report says.
Exchange-traded funds have made it a lot easier to invest in gold — no need to store a gold bar or a bag of coins — and they have also made it much easier to borrow money to support such positions.
When unemployment is too high, they should make it cheaper and easier to borrow, all the while working to make sure that inflation expectations remain under control.
Strong overall growth in credit is powering a recovery in China's construction sector this winter, as businesses and households are starting to find it easier to borrow.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com