In other words, there's regular self-destruct mode, and then there's dedicated self-destruct mode. The Idiocracy will settle for no half-measures: Two years of borrowing at 1% was "fixed" with eight years of borrowing at 0%. Global Central Banks are now raising borrowing costs at the point of maximum leverage...
"Over a protracted period of good times, capitalist economies tend to move from a financial structure dominated by hedge finance units to a structure in which there is large weight to units engaged in speculative and Ponzi finance.” - Hyman Minsky
The financial cycle LEADS the economic cycle, with a strong feedback loop between the two cycles. At the early point of a recovery, risk assets reflate under the expectation of future increased profit, despite prevailing weak economic conditions. This early stage risk-seeking combined with Monetary and Fiscal policy feedback into the economy via investment. However, at the end of the financial cycle, risk aversion spreads as investors anticipate the falloff in economic activity. This risk aversion feeds back into the economy via a tightening of financial conditions. Policymakers can distort this process by incentivizing late stage risk-taking, but over thousands of years they have yet to find a way to forestall the inevitable economic contraction resulting from raising borrowing costs at the point of maximum financial leverage.
Cycles with Monetary Distortion aka. “Quantitative Easing”