In addition, even some countries with surpluses, such as Russia, have Banks that have grown accustomed to easy foreign lending because of the integration of global finance.

Although they are likely to fall as a result of the slumping world economy, they may be less fickle than more publicised private-capital flows, such as equity and lending by foreign Banks.

To keep the wheel of borrowing and lending spinning, the Icelandic Banks relied on foreign institutions to lend them cash.