This is simply wrong. I bought a used car in late 2015, and they didn't verify anything I said. No letter from my employer, no proof that I own property, nothing. If I really wanted to, I could tell them I make 200k per year, and they would write that down as if it were fact. I'm sure that lending practice will backfire at some point.
It's hard to feel any pitty for the idiots who buy junk bonds. This is not a new scam. Seth Klarman's book was published in 1991, and even that book talked about the scam of junk bonds in the 1980's. They became popular when interest rates started falling, and investors were chasing yield. That was 25-30 years ago! It doesn't matter. People forget anything that happened more than 3 days ago, so they fall for the same scam every time. Warn people about an impending collapse in junk bonds? Why? They were warned every year for the past 25 years. By this point, the only people piling into them are people who want to lose money.
Which is apparently a good thing. If the central bank is to be believed, savings are bad. You should live on the brink of bankruptcy at all times. You should have zero savings, zero investments, and lots of debt. Of course, this naturally means that small crises turn into epic disasters because one person losing their job for 5 months could cause bankruptcy and forced liquidation of their assets, but who cares about things like the future. Get out there and spend!
I guess I'm just an old person stuck in my old ways. As an enemy of central banking, I have about 3 years of income saved up in various investment accounts. I could be unemployed for a year and it would have no effect on my spending levels. I would still get haircuts at the same place with the same frequency, buy the same food, drive the same car, watch the same movies. If bankers are to be believed, this is bad. Stability is bad. The entire economy should be a tinderbox waiting for a spark.