Crises share two things..

Writing in the Weekend FT Gillian Tett looks at (financial) crises old and new and what they share.

First, the pre-crisis period is marked by hubris, greed, opacity and tunnel vision…that makes it impossible to assess risks.

Second, when the crisis hits, there is a sudden loss of trust, among investors, governments, institutions or all three.

Remember that that the roots of the word “credit” comes from the Latin, “credere”, meaning to believe; finance does not work without faith.

The irony is that too much trust creates bubbles that (almost) inevitably burst.

Wise words indeed.

 

Published by Alun Rees

Dental Business Coach. Analyst. Troubleshooter. Consultant. Writer. Presenter. Broadcaster.

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