McKinsey: CRE in Spain, US, UK at Highest Risk of Deleveraging

McKinsey has put out a quick and dirty read entitled “Debt and Deleveraging: The Global Credit Bubble and Its Consequences”. In it, they detail how current leverage within the financial system compares to historic numbers and the massive run-up that occurred during the majority of this decade.

The entire report can be accessed by clicking here, but the report indicates that deleveraging takes 2-3 years, at which time GDP growth is suppressed. The report also concludes that the deleveraging process is just getting underway.

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