It weakens investor confidence in the debt, heightens the risk of a financial crisis and reduces the government's budgetary flexibility to address future, unexpected shocks.
Last week, the Government-ordered closing of the Guangdong International Trust and Investment Corporation, a big investment company swamped by debt, heightened concern about the vulnerability of China's rickety financial system, already burdened by insolvent banks.
Plus, worries about college costs and student debt heighten desires for a good salary after graduation, he said.
The company, based in London, sold $243 million of convertible bonds last week and said it might sell more debt soon, heightening speculation that EMI might be lining up financing for an acquisition.
The crop failure of 1873, the sultan's lavish expenditures, and the mounting public debt had also heightened public discontent.
The problem remains though that consumers are under serious pressure from sharply higher and rising unemployment, markedly reduced earnings growth and heightened debt levels".
An international consortium, "Friends of Pakistan," was assembled in September amid growing fears of debt default and heightened social unrest, but Islamabad was unable to wait for international decision making.
Thanks to the public debt crisis and a heightening mistrust in big banks and corporations, the book points out that only 22% of Americans say that they trust their country's financial system.
In the past, elevated high-risk debt issuance has foreshadowed heightened levels of future distress, and that is likely this time around too.
