Goldman Sachs issued a note to its customers, reproduced by ZeroHedge, warning of a “credit tail event.” A credit tail event is an extreme credit loss scenario caused by widespread or concentrated defaults, credit rating downgrades, or severe market dislocations in credit spreads. It could be a sudden wave of corporate defaults, like in 2008, a major counterparty failure (like Lehman Brothers), a sovereign default or a liquidity freeze. All these cases have occurred already in the last three decades. Recent behavior and warnings by central banks suggest that either of the first two cases has already occurred.