The US Is Better At Deleveraging Than Europe

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, September 23, 2013 The US Is Better At Deleveraging Than Europe The financial crisis was more-or-less about debt-fueled (i.e. leveraged) economic growth that screeched to a halt when loan defaults caused the credit markets to seize. The post-crisis era has been characterized by countries, corporations, and individuals deleveraging their balance sheets. Some entities have been able to grow while deleveraging. Others have seen growth stagnate or fall. At its Global Economics & Strategy Day last Friday, Morgan Stanley circulated a 97-page slide presentation that included this chart fixed income analyst Neil McLeish. It shows total debt (government, household, financial and corporate) as a percentage of GDP. Two things jump out: 1) debt-to-GDP has been on the rise for decades and 2) the U.S. has been doing a much better job of deleveraging than Europe. Read » Also On Markets Today: Why Wall Street's Most Bearish Strategist Is Still Calling For A 15% Market Decline By The End Of The Year CHRYSLER GROUP FILES FOR IPO Advertisement CHART OF THE DAY: We've Never Seen A Bigger Push Into Stocks Than We Did This Week CHART OF THE DAY: Median Incomes Have Increased In Just Two Of The Last 11 Years CHART OF THE DAY: The Fed Projects Rates Through 2016 Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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