Excessive greed or optimism or easy credit leads to overinvestment, soaring asset prices and unsustainable borrowing binges. (bloomberg.com)
There are three dangers associated with unsustainable borrowing: firstly, in an economy with a low level of saving, increased borrowing may push up interest rates and crowd out private sector economic activity; secondly, high borrowing can increase pressures to increase taxation; and thirdly, increased public borrowing adds to the National Debt, which requires greater servicing. (politics.co.uk)
«Unfortunately, if Springfield fails to do its part, we will be forced to close a $ 500 million gap later this year with a mixture of more unsustainable borrowing and even deeper cuts.» (chicagotribune.com)