Between 2001 and 2008 it acted as a useful counterweight to the credit cycle.
Bankers are keen not to be left holding a toxic tranche of unsellable debt if the credit cycle turns.
There are slight signs of decay in corporate balance sheets, too, suggesting that the credit cycle is becoming less benign.
For many banks, the crisis reflects a simpler tale of frenetic asset growth and the inevitable turn of the credit cycle.
The credit cycle has not yet run its full course, as there are still significant credit losses hiding in the cupboards of banks.
It enables banks to offload credit risk, provides transparency on lending conditions and may even smooth the ups and downs of the credit cycle.
Investment bankers archly observe that judgments on which bit of the business is the casino ought to be withheld until the end of the credit cycle.
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Emerging from this credit cycle, the strong will inevitably get stronger and the better banks will reap the benefits of buying distressed assets at bargain prices.
This is the stuff of which bull markets are made: A favorable credit cycle, real estate recovery and government reform are all underpinning strength in Japanese equities.
Inflating is easy when the credit cycle is expanding.
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"When we get through this credit cycle there will be tickets that large again, " says Fleming, 45, a Yale Law School graduate who worked his way up via Merrill's investment banking side.
"It is hard to escape the conclusion that Citi is going to consume all of the TARP money and then some as the credit cycle troughs, " Whalen said in a research note Tuesday.
But maybe there would be a reduced danger of extremes in the credit cycle, because there should be less illusion about where the risks of lending actually reside and therefore better pricing of credit.
He added that this was the opposite of the 2001 credit-tightening cycle, when the credit conditions for smaller businesses recovered more quickly.
The weaknesses of neo-classical free market economics have been exposed by the credit super-cycle, whilst the likelihood of a return to Keynesian management is remote (not least because of existing burdens of debt and welfare commitments).
Credit markets seem to cycle through a certain sequence.
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"If there's too much uncertainty, no one will want to take the first step, " John Paglia, a small-business researcher at Pepperdine University, says of kick-starting the cycle of credit, spending and growth.
These sorts of market failures are most common during downturns in the business cycle, when credit availability tightens.
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Yes, the U.S. is struggling, because it is caught in a de-leveraging cycle after a massive credit binge.
The bank's credit culture is consistent throughout the cycle, meaning that it loses market share in boom times and wins business in environments like this one.
Company executives expressed hope that oil directed activity and the presence of large international players and credit availability will sustain the North American cycle over a long period of time.
Amid the credit-boom phase of the present business cycle, the Japanese yen has been weak across the board, and is 25% undervalued against the dollar.
You know, they've taken a lot of criticism for having moved too slowly in the last tightening cycle and for fueling the housing and credit bubbles.
The ExxonMobile Smart Card, a chip-embedded gas-only card that is coming out later this year, will allow card holders to earn a six-cents-per-gallon credit on up to 100 gallons in each billing cycle.
Stock markets sold off, a Credit Suisse report concluded that the commodity super-cycle underpinned by China has drawn to a close, and economists worried about the implications for the already slow economic recovery in the United States.
The only way to prevent the cycle from turning is to inject ever more credit, which becomes unsustainable.
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