Why Is Leverage a Problem?

When we get a recession, cash flows, the claim and ability to service debt declines. If you then get mass defaults on debt, you take you towards bank bankruptcies. We all want to avoid depressions, obviously because of thehjust human consequences of depressions. But i think central bankers it seared into their memory that what came after the great depression was a world war. So there are great fears of social, political dislocation associated with tha great depression. And that is why governments will tark of this. It is just worth saying to metu that we had very high debt o g t p ratios afterward war to and the government decided to inflate those away. This