Everyone cannot be repaid at the same time. So there is a risk of a scenario where many lenders get scared and try to get their loans repaid and stop making new

Everyone cannot be repaid at the same time. So there is a risk of a scenario where many lenders get scared and try to get their loans repaid and stop making new loans. If that happens is becomes much more difficult for people to buy a house, car, college tuition, construction loan. That could cause a recession which causes businesses to do layoffs and spend less because they are worried about future income.