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Sudden evaporation of market confidence/trust

Confidence/trust in the ability of others to pay debts suddenly evaporated from the market: with the result that few are willing to risk lending any one else any money.

RELATED ARTICLESExplain
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The Global Financial Crisis
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Immediate triggers of the financial crisis?
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Sudden evaporation of market confidence/trust
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Commercial paper market froze up suddenly
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No one knows the scale of any player's existing liabilities
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Risk that no one will want to lend anyone else money
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Banks' borrow-short-lend-long strategy backfired
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Inverse characteristics of trust and fear
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Sudden, sharp increase in global risk aversion by baby boomers
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Information cascade
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Global insolvency / bankruptcy
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Agency Problem
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Bubble in US house prices collapsed
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Foreign governments fled US agency bonds
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France loses its AAA, Germany can't support € alone.
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Pathology in the Credit Default Swaps market
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