'Extend And Pretend' Meets The Great Deleveraging

Law360, New York (January 25, 2012, 1:06 PM EST) -- During the easy money days preceding the subprime mortgage crisis and the collapse of Lehman Brothers, many companies (as well as consumers and governments) took on too much debt. A great deleveraging is needed for consumers, companies and governments to reduce debt loads to sustainable levels.

The great deleveraging appears to be partially underway. Consumers have been reducing debt and rebuilding their savings since the financial crisis began, but companies have not been as aggressive in deleveraging their balance sheets and addressing pension and health care...
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