Moronic. Whoever wrote this doesn't have any understanding of accounting and the credit-debit relationship that underlies accounting.
All borrowing results in a debt that is a payable and corresponding saving that results in a loan that is a receivable. A debt is account payable and loan is a account receivable.
A debt obligation is a financial liability and ownership of a loan is a financial asset.
Some credit is used to to fund capital investment, and some credit is used to fund consumption.
As long as revenue is sufficient to service repayment obligations on time, there is no liquidity (cashflow) problem, and insolvency is not an issue.
The relevant question is whether ability to pay is commensurate with obligations undertaken.
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