Bangs Quote by Carmen Reinhart

“Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence - especially in cases in which large short-term debts need to be rolled over continuously - is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments…” quote by Carmen Reinhart — Download Open image

“Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence - especially in cases in which large short-term debts need to be rolled over continuously - is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments, banks, or corporations can seem to be merrily rolling along for an extended period, when bang! - confidence collapses, lenders disappear, and a crisis hits.”

Carmen Reinhart

About This Quote

Source Book: This Time Is Different: Eight Centuries of Financial Folklore, by Carmen M. Reinhart and Kenneth S. Rogoff, 2009

When confidence is fragile and debt must be constantly refinanced, a sudden loss of trust can trigger a rapid crisis despite apparent stability.

In simple terms: Over‑reliance on shaky confidence and rolling debt can cause sudden crises.

Key Takeaway

Watch debt structures and confidence signals.

Themes

finance risk confidence crisis macro economics

Mood

cautious analytical concerned

Type

analytical warning financial

When to use this quote

government budgeting
bank lending
corporate finance
investment strategy
policy planning

Key Concepts

financial cycles confidence fragility debt rollover systemic risk

Questions to Reflect On

How can you detect early signs of confidence erosion?
What safeguards can reduce rollover risk?

A Different Perspective

If confidence is misread, interventions may be too late.

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Bangs Cases Collapse Confidence Confidence Collapses Corporations Crisis Customer Debt Different Disappear Disappear Crisis Factors Failure Fickleness Confidence Giving Government Indebted Keys Lenders Needs Periods Politics Precariousness Fickleness Rolling Rolling along Seems Short term Syndromes Term

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