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Money and credit are intertwined, for good or ill; whereas sound, market-based money undergirds steady and sustainable debt systems, arbitrary and political money engenders shaky and vulnerable debt systems.
Just a few weeks ago, it was the considered opinion of many a seasoned opinionator in real estate finance that the $22 billion sale of multifamily real estate investment trust Archstone-Smith to Tishman Speyer Properties and Lehman Brothers, announced in May, would collapse under the weight of its suddenly vulnerable debt structure amid the credit markets freeze-up that took hold in August.
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As a consequence, they are "highly vulnerable" to debt bondage and forced labour.
Other eurozone countries seen as vulnerable to debt default – Ireland, Portugal and Spain – have also been targeted.
It is a system that the State Department concluded in a 2010 report often leaves workers "highly vulnerable to debt bondage and forced labor".
Those on the lowest income will almost certainly be more at risk to changes in financial circumstances and vulnerable to debt".
In at least three of the seven bankruptcies, however, companies appear to have been made more vulnerable by debt taken on to return money to Bain and its investors in the form of dividends or share redemptions.
"The fall in inflation is welcome, but while wage growth remains anaemic family budgets will be increasingly stretched by spiralling living costs, leaving many vulnerable to debt," said the charity's head of policy, Peter Tutton.
The Trust, which runs National Debtline, said more could be done for the vulnerable in debt.
Seven countries, by McKinsey's reckoning, are still vulnerable to debt-laden housing busts: namely, Australia, Canada, Malaysia, the Netherlands, South Korea, Sweden and Thailand.A second problem with high debt levels is the need to refinance regularly.
They will be vulnerable to debt-driven inflation and political instability.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com