Debt bomb(redirected from Debt Bombs)
A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved