How the Trump administration could be enabling the next big financial crisis

Relentless pursuit of growth has consequences

The White House.
(Image credit: Illustrated | MagicVectorCreation/iStock, dkfielding/iStock)

No one knows for sure what will cause America's next economic crisis. But corporate debt is a strong contender. U.S. companies borrowed record amounts in the last few years, surpassing their previous pre-Great Recession peak, and a disturbingly large portion of those loans are high-risk and likely to fail.

It turns out the Trump administration has been actively fueling this debt binge. A big Washington Post report, built off conversations with 31 current and former officials and bankers, just laid out how Trump's appointees have removed or ignored some of the regulatory guardrails that restrain corporate borrowing.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.