Prof G Markets · Monday, July 27, 2026
The discussion highlighted that leverage, particularly in corporate debt, is a key indicator of potential financial crises. The large amount of off-balance sheet debt being used by big tech companies is seen as a concerning sign similar to past economic downturns.
“There is a sweet spot of leverage in the economy, both in the banking system and corporate debt, and even personally, a certain amount of leverage.”
“But whether it's the depression, whether it's a great financial recession, whether it's a dot-com implosion, nothing rings the bell of a beginning of a crisis like leverage.”