In the 1870’s when the British Empire was the epicenter of the financial universe, the Editor of The Economist, Walter Bagehot observed “In England, after a great (credit) calamity, everyone is suspicious of everybody. As soon as that calamity is forgotten, everybody again confides in everybody”.
Leading up to 2008, indeed the lending marketplace was a place where “everybody confides in everybody”. The liquidity in the corporate and SME loan markets was jaw-dropping. Fast forward to 2014 in South Eastern Europe: ‘everyone is suspicious of everybody’.
Published on the TMA website: http://www.tma-europe.org/news-and-press/detail.asp?ItemID=251