Deleveraging lowers the risk of default on debt and mitigates losses, but if it is done by selling assets at a discount, it may depress security and asset prices and lead to large losses.
The crisis precipitated what has proved to be a big and permanent hit to the size and structure of the UK economy. Moreover, there are also signs that the crisis may have had lasting effects on potential growth through its impact on fertility rates and migration, as well as on income inequality.
Interest rates set by the Monetary Policy Committee of the Bank of England have been, for the whole period sinceat their lowest levels since the Bank was founded in Financial regulatory reform also made the banking sector safer.
Despite these effects, specific policies did have an effect on how individual countries fared after the crisis. Bankers themselves were never punished for their sins. Companies borrow to buy assets that increase their growth potential or increase returns on investments.