Consumer, corporate debt could cause next crisis - Democratic Presidential Candidate Warren

US Senator Elizabeth Warren, now a Democratic presidential candidate, warned Monday that the US economy is at risk of a recession, largely due to high levels of debt among both consumers and businesses, according to American Banker.

Key quotes (Source: American Banker, Reuter, Medium)

"Warning lights are flashing. Whether it's this year or next year, the odds of another economic downturn are high — and growing."

"Congress and regulators should act immediately to tamp down these threats before it's too late."

" Families may be able to afford these debt payments now, but an increase in interest rates or a slowdown in income could plunge families over a cliff."

"Leveraged lending — lending to companies that are already seriously in debt — has jumped by 40% since Trump took office."

" The risks of leveraged lending are exactly the kind of thing Financial Stability Oversight Council (FSOC) is supposed to monitor, but the Trump-era FSOC is falling down on the job."