The suddenness of the financial crisis caught many unawares. In reality, financial pressures had been building for years as funds flooded from emerging economies like China to developed economies like the US. This was exacerbated by banks’ increasingly reckless taste for risk.
The events of 200 have already passed into history, but they still have the power to take our breath away. Over a matter of months, a succession of earthquakes struck the world’s financial system – the sort of events that might normally happen only once in a century.
In reality, the warning signs were already there in 2007, when severe pressure began building in the subprime securities market. Then, in March 200, ...