Big Debt | Crises

: A deflationary depression in the U.S. marked by bank failures and a collapsing stock market .

According to Ray Dalio , most debt crises pass through these distinct phases: Big Debt Crises

: Credit disappears, asset prices crash, and interest rates hit 0%, making standard monetary policy ineffective . : A deflationary depression in the U

: Leveraged buying peaks; central banks tighten policy, and debt service costs rise . asset prices crash

: A modern housing-led crisis that required massive government bailouts and "quantitative easing" .

: Central banks create money to buy assets and provide liquidity .