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Yet there was no wave of defaults.
"We don't expect a wave of defaults," he says.
"There's a big wave of defaults coming over the next 12 to 18 months".
The next wave of defaults, he said, could hit hedge funds and private-equity investors.
"Are foreclosures going to drive another wave of defaults?" Mr. Blecher asked.
Some analysts also fear a wave of defaults on these loans.
A messy wave of defaults in the euro area would likely fell a few British banks too.
Would he really be prepared to trigger a wave of defaults in order to clean up India's bad debts?
A wave of defaults followed, with each collapse setting off the next, like a set of dominoes.
It also should have been obvious that a serious wave of defaults was going to hit the financial system.
By that standard, says Martin Fridson of the research firm FridsonVision, a new wave of defaults is overdue.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com