Debt Bomb
This occurs when a major financial institution, such as a multinational bank, defaults on its obligations that causes disruption not only in the financial system of the institution's home country, but also in the global financial system as a whole.
Investopedia Commentary
A debt bomb can occur also if consumer spending is based heavily on debt. For example, if a nation incurred huge credit card debt, individual debt holders could default en masse and create trouble for creditors.
Related Links
Debt Reckoning
What Is A Corporate Credit Rating?
Consumer Credit Report: What's on It
See also: Bankruptcy, Consumer Credit, Credit Card, Debt, Default, Default Risk