Enterprises are  BIS central bankers’ speeches  1  normally reliant on borrowed capital to fund investments and thus make growth possible. Debt becomes harmful only if it grows on an excessive scale and capital flows into unprofitable areas. In the event of an asset price bubble, however, it is not only banks that have positioned themselves wrongly, but also investors and borrowers.
2. The ongoing deleveraging process  After an asset price bubble has burst, a deleveraging process is necessary, such as we are witnessing at present in many parts of Europe.