Gulf News Dubai Advises "Responsible Borrowing Is Now The Way To Go"

What can one say when confronted with a headline like this?

I thought responsible borrowing always was the way to go.

Apparently not.  At least in certain places. 

Anyways it's reassuring to learn as GN says "Even banks have promoted responsible borrowing, urging UAE residents to only borrow what they require and can afford to repay".  Since banks are in business to collect the principal and interest on the loans they make, there is a bit of enlightened self-interest at work here.  The nagging question is earlier were the banks promoting irresponsible borrowing?

This is, I suppose, also sound advice not only for individuals, but also corporations and governments.  Hopefully those latter parties have a print subscription or Internet access.

Finally this comment is just flat out wrong:  " If you have investments somewhere, it would be safe to borrow up to 70 per cent of the value of the investments".  

The borrowing base of an investment or any asset depends on the nature of the investment/asset, what sort of cashflow it has,  how liquid it is and how sensitive its value is to market movements - among other factors.  There is no fixed "safe" percentage. 

The purpose of the loan is also something to reflect on.  If you're borrowing to build an indoor mountain range as opposed to say a factory or hospital, it might be a good time to "think again".