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In fact, the growing scale of credit has begun to worry an increasing number of analysts, who warn that the resulting buildup of debt bears substantial risks, including asset price bubbles and potentially destabilizing defaults.
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The scale of the credit crunch caught everyone by surprise.
"It's not a lot of money relative to the scale of the credit market problems," Mr. French said.
That suggests official figures may have underestimated the size of the boom — and may not capture the scale of the credit squeeze under way.
Given the weakness of the American economy and the scale of the credit crunch, it probably will not be long before that test comes along.
In Wenzhou it is hard to find someone who is not in some way involved in it, according to Kellee Tsai, a professor at Johns Hopkins University and author of "Back-Alley Banking".Whatever the true scale of informal credit, there is now not enough to go around.
"The truth is, the scale of the credit crunch was even larger than we appreciated at the time, and then on the back of that we had the very extreme difficulties in Europe," she says.
* In recent months, there have been reports of large-scale breaches of credit card security on the Internet.
But we need to see a massive scaling up of credit unions and CDFIs as well as encourage the main high street and new challenger banks to serve poorer communities if we are going to keep the dogs from the school gates.
This result quite satisfied the management of Karafarin Bank because it is in tune with their presumptions of operational risk, and it is reasonable compared to the scale of market and credit risk exposures.
The scale of the Target credit-card breaches is unprecedented, and it's likely that more than 10 million customers will find their credit cards abused, according to research that's shown that of consumers whose data was breached in 2012, one in four became victims of identity fraud.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com