credit bubble
Overextended borrowing surge
A credit bubble is a period when lending expands rapidly and recklessly, with banks and other institutions extending credit to borrowers who increasingly can't repay.
Easy money inflates asset prices—housing, stocks, corporate debt—until the bubble bursts and defaults cascade through the financial system.
The 2008 financial crisis followed a massive credit bubble in mortgage lending.
- debtMoney owed another
- speculationUnproven theorizing or risky investment
- irrational exuberanceUnjustified collective market optimism
- burstBreak apart suddenly
- collapseSudden structural failure
housing · housing market · real estate · subprime · overleveraged · inflated · crash · bailout · recession · Wall Street · easy money · default · too big to fail · foreclosure · lending · boom · euphoria · mania
- market bubblestulip mania, tulip mania, irrational exuberance, greater fool theory, boom and bust
credit bubblecredit crunch
Severe reduction in lending
credit freeze · liquidity crisis · credit squeeze · tight credit · deleveraging
credit, bubble, credits, credited, crediting, creditor, creditors, creditable, accredit