But by the start of 2014, the provision of bank credit to the real economy had dried up, shrinking at an annual pace of 1.7% in the first quarter. The euro area found itself in a vicious circle: as credit tightened, the economy worsened and risk perceptions rose, causing credit to tighten still more.
1/5  BIS - Central bankers' speeches  During these good times, access to credit was easy, which encouraged people to borrow and spend more. But, to continue Warren Buffet's analogy, we have experienced an unprecedented series of tidal currents.