3min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP559: Mastering the Market Cycle by Howard Marks

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

The Credit Cycle

The credit cycle is the most volatile of the cycles, and it has the greatest impact on the economy. Sometimes the credit window is wide open, and then suddenly it can just slam shut. Financial institutions rely on credit in order to maintain their daily operations. When the credit market seizes up, it can quickly cause fear to spread,. This further exacerbates the issue and creates a vicious cycle until relief is provided.

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