When this comes about, there will be a rush to have the government bail people out with massive government spending programs(sub-prime bailout being discussed now), which will only further the problem. Dark days ahead.
massive government spending programs = greater deficit = greater long term problems.
We are now in the “long term” that Keynes pooh-poohed.
Not that we ever really tried what Keynes proposed which was paying down the debt in good times and expanding it in bad . . .