Credit crunch
September 29th, 2008 by fieldus
Nextbook: Soldier of Misfortune
It is the tendency of financial institutions, during stable periods, to discount the inherent uncertainty of future profits. This eventually—indeed, inevitably—leads to big trouble. As the sense of risk and uncertainty diminishes, financial actors lend and borrow more in order to maximize the future profits that seem assured.
In other words, a sense of history is sadly lacking.
