Now that the worst of the financial crisis is behind us, one would think the budget deficit might start to come down. Actually, no. Obama’s proposed budget sets a new deficit record — $1.6 trillion this year compared to $1.4 trillion last year.
McKinsey report on de-leveraging — pdf (McKinsey, ht Paul M) Lots of interesting charts. Conclusion is that debt reduction in the developed world has only begun. The Economist has a good summary too.