ABSTRACT
The recent global financial crisis has had the following interconnected aspects:
Excessive loan growth in the US and Europe, the implications of which was not well understood at the time, we address this point in Section 9.1;
Rise of shadow banks and derivatives in the US and Europe, and the failure of underwriters of credit derivatives to have loss provisions for them, which we also address in Section 9.1; and
International forces arising from currency arrangements in Asia and Europe which have fuelled existing economic imbalances, we address this in Section 9.2.
