O'Reilly logo

The Great Deleveraging: Economic Growth and Investing Strategies for the Future by Oded Shenkar, Chip Dickson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

10. The Great Deleveraging

What goes up—must come down.

The capability of many of the world’s developed economies to support a rising level of debt relative to their economies and continue the trend of debt growth exceeding economic growth is reaching its limits and might be close to the tipping point. That is, the point when additional incremental debt will begin to be economically destructive. In this scenario, additional debt will coincide with economic decline, which will not be slowed by further leverage—continuing to increase debt faster than the economy grows.

The United States appears to have begun its second period of structural deleveraging in the last 100 years. The first period began in 1930, but debt to GDP did not peak until 1933. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required