Debt bomb

(redirected from Debt Bombs)

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.
References in periodicals archive ?
Be careful of the debt bombs bankrupt Zombie Bankers leave - they are explosive and will cut your time down faster than a banker reaching for his bonus.