Overextension

See: Over-leveraged.

Think: gymnasts doing splits. Overextension happens on a lot of fronts. And more than just stretching groinal areas.

Companies commit to producing 14 million units when they really only have capability of producing 8 million. They're overextended with their buyers who likely themselves have committed to others to deliver 14 million units.

Overextension happens in credit as well. Companies think that they'll keep growing forever. They borrow $100 million at 7% only to find that their business has turned for the worse and they can't pay the piper. They lose the company to a bankruptcy system and, well, they cry. Try doing that while you're doing one of those hurdler stretches and you'll catch the vibe.