Death spiral financing

Imagine you have a piggy bank with 20 dollars inside. You need that 20 dollars to buy a toy that you really want.

Now let's say you borrowed some extra money from your friends, family, and maybe even a bank to buy the toy. But you soon realize that you can't actually make enough money to pay back all of the money you borrowed.

You're in trouble because you now owe more money than you have, so you start borrowing more money to pay off the old debts. This works for a little bit, but you keep borrowing more and more money without actually making any money to pay back what you owe.

And then suddenly, you find yourself in a "death spiral" - a situation where you're just burying yourself deeper and deeper in debt, without any hope of paying it off.

Now, think of this on a bigger scale. This is what happens in a "death spiral financing" situation. A company borrows money to keep going, but can't make enough money to pay back its debts. So it borrows more money to pay off the old debts, and the cycle continues until it can't borrow any more and eventually goes bankrupt.

Death spiral financing is a dangerous situation that can happen when a company is struggling financially and can't find a way to turn things around.