debt cascade
[/det ˈkæskeɪd/]
nounpl: debt cascades
cascata de dívidas
1. A situation where unpaid debts trigger a chain reaction of financial failures, with one debt default leading to multiple subsequent defaults
The mortgage crisis triggered a debt cascade that affected the entire financial system.
A crise hipotecária desencadeou uma cascata de dívidas que afetou todo o sistema financeiro.
2. The progressive inability to pay debts as previous obligations compound and create new financial obligations
Without intervention, the company faced a debt cascade that could lead to bankruptcy.
Sem intervenção, a empresa enfrentava uma cascata de dívidas que poderia levar à falência.
This term gained prominence following the 2008 financial crisis and is commonly used in business news, economic discussions, and financial analysis in both Brazil and the United States. It represents a key concern in macroeconomic policy and banking regulation.
NYC Slang
financial house of cards
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