Gyan

Leverage:

I have never been a big fan of leverage. in past seven or eight years I have hardly seen any one making money by taking leverage. I heard some one saying that if you trade excessively in the market and take excess leverage you are some who "eats like a chicken and pass like an elephant" I like the statement and I have seen many just doing that.

I think it is the cost of leverage and the returns that you get from any risky investment that tilts the bargain invariably for some one who give leverage. (though this time around even leverage givers i.e. banks also lost a lot, but they would have survived if they were not leveraged so heavily).

the only place where leverage may make sense is a house loan simply since this is cheaper as compared to other loans, but even this should be kept minimum.
leverage for investment (Yes, including investment in a house) can best be avoided or should be minimum.

So leverage is bad and here are my comments on the use
Leverage for buying a house is OK.
Leverage for investing in a house should be minimum.
Leverage for investing should be avoided.
leverage for Trading is a crime (Well almost)
Leverage for enjoying, God bless you.

Cheers