Ballooning Danger
In a weakening economy, rising indebtedness could cause problems
The global financial meltdown of 2008 was brought on by a choppy U.S. mortgage market. Part of the crisis was triggered by high household debt besides lending to borrowers with not so good credit history. The world's largest economy saw its household debt steadily rise to nearly 100 per cent of GDP at the time of the crisis from 65 per cent a decade ago. That was a massive jump in a matter of 10 years as the money had rolled into mortgages, car loans, credit cards, personal loans and more. Eventually, the easy money induced the crisis and other markets suffered as well. India's household debt to).
