Cycle of Credit Booms

“Consider the past quarter century: a credit boom in Japan that collapsed after 1990; a credit boom in Asian emerging economies that collapsed in 1997; a credit boom in the North Atlantic economies that collapsed after 2007; and finally in China. Each is greeted as a new era of prosperity, to collapse into crisis and post crisis.” MARTIN WOLF (“We Are Trapped in a Cycle of Credit Booms,” Financial Times, October 8, 2014,)