The thing becomes unstable first and brakes down when NPLs go through the roof because banks stop creating new additional money by granting more loans.
This makes it even harder for debtors to find ways to get the money in their hands they need to fulfill their credit contracts. But even with more money injected at the bottom of the wealth pyramid (QE4People), the root cause, an ever increasing inequality of the distribution of money AND real capital driven by a stochastic multiplicative process doesn't go away.
It's that simple!
No one saw that black swan coming;-) while occupied with endless discussions and circle arguments of an absurd nonscience called economics.
"World faces wave of epic debt defaults, fears central bank veteranExclusive: Situation worse than it was in 2007, says chairman of the OECD's review committee" = Rats get out of there holes, because deception doesn't work any more.
Now, when it is almost to late, they are selling the truth to wash their hands.
The evidence can be found here:
Some more theoretical back ground here:
Thanks to Steffen Bogs for providing the charts based on public available data in his highly recommended fact based blog "Querschuesse".