Illya Gerasymchuk
Entrepreneur / Engineer
leverage and the carry trades eventually unwind at some point there isn't enough on-demand liquidity and mass defaults, losses and insolvency occur this is when the cycle tops/bubble pops
the financial system is heavily dependent on refinancing this is true for both, governments and the public sector - especially the financial institutions ≈70% of all new credit is used for refinancing/repaying of existing maturing debt rather than novel financing