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Debt Bomb

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Debt bomb
A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system.

Debt Bomb
A situation in which a major institutional investor, especially a bank, defaults on a debt. A debt bomb can cause massive confusion and panic throughout the national and global economies, particularly in an economy heavily dependent on debt and easy credit availability. A debt bomb can trigger government intervention such as a bailout. See also: Lehman Brothers bankruptcy, Bear Stearns bankruptcy, Credit crunch, Too-big-to-fail.


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When the debt bomb explodes--within the next one to three years--expect to see record high real interest rates and/ or inflation, coupled with a collapse of many "entitlements.
We want Wall Street heads to roll for the toxic debt bomb, but skip past the mirror when assigning blame.
The consumer debt bomb is already beginning to spray shrapnel throughout the financial markets, further weakening the U.
 
 
 
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