High levels of consumer debt can lead to economic instability from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
When consumers carry high levels of debt, they are essentially spending money they haven't earned yet. This can create a false sense of prosperity and lead to increased spending on goods and services. As a result, businesses may expand to meet this demand, hiring more workers and investing in additional resources. However, this growth is not sustainable if it is fueled by debt rather than real income. Inevitably, consumers will reach a point where they can no longer afford to repay their debts. At this stage, they are forced to cut back on spending, which can hav...
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