Debt-to-liquidity ratio has maintained a stable equilibrium at approximately 2.5 times over the long term since the early 1980s; when this ratio exceeds 2.5, refinancing strain emerges and manifests as financial crises
causalpending
Speaker
Dr. Michael HowellEvidence Quote
“stable equilibrium at about two and a half times...if you go above two and a half what you tend to find is that the debt liquidity ratio becomes strain you get refinancing problems and those refinancing problems Express themselves in financial crises”
Source
Global Debt Binge May Force QE + Inflation: Dr. Michael Howell— Mark Mitchell - Mortgage Broker London OntarioCreated: 8/11/2026, 7:48:18 AM
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