Storm Financial: borrowing on borrowing
Understand how double gearing turned a market fall into negative equity for Australian households.
Module 25 of 26, When it goes wrong: real blowups. Lesson 2 of 6, about 16 minutes.
The takeaway
Borrowed money comes with forced-sale deadlines. Margin calls force you to sell at the worst time, turning paper losses into locked-in losses. Leverage that looks safe in a bull market can wipe out your home equity in a bear market.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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