What is a debt crisis?
A debt crisis refers to the propagation of massive public debt in relation to tax revenues. This occurred massively in Latin America in the 1980s, the United States and European Union in the mid 2000s and in the Chinese debt crisis of 2015.
Where have you heard about debt crisis?
In recent years, the European debt crisis has afflicted various countries within the Eurozone. These member states who suffered the crisis were not able to repay their government debt or to relieve indebted financial institutions without help from notable third parties.
What you need to know about debt crisis.
High risk lending and borrowing, large deficit spending and burst real estate bubbles can all be causes of a debt crisis. One of the most reported debt crises in recent years was the 2013 United States debt ceiling crisis. This entailed the focus of raising the federal government debt ceiling. It began in January 2013, when the United States met the debt ceiling of $16.394 trillion. On February 4th 2013 President Obama signed the “No Budget, No Pay Act 2013” which halted the US debt ceiling through to May 18th 2013.
Find out more about debt crisis.
If you are interested in debt crisis, take a look at our page on financial crisis.