“When the music stops,” Chuck Prince famously observed back in mid-2007, “things will get complicated”. The then Chief Executive of the US banking giant Citigroup was admitting that growing concerns about sub-prime loans could ultimately shatter what we now know was “irrational exuberance” on global financial markets.
“As long as the music is playing, though, you’ve got to get up and dance,” Prince continued. “And we’re still dancing”. There’s a “we’re still dancing” mood on global markets today, just as there was six years ago, in the run-up to what turned out to be the disastrous market melt-down of September 2008.