It seems to me that as interest rates go down people take on more debt because their interest payment is the same. This is true of households, companies, and g

It seems to me that as interest rates go down people take on more debt because their interest payment is the same. This is true of households, companies, and governments. At the same time, the price of assets goes up. As long as interest rates are going down it all works. At some point, however, you reach an interest rate of zero and a zombie economy (insolvent companies, governments and households refinancing to repay debt) or interest rates go up and everything collapses.