More than 10 years ago, Lehman Brothers collapsed,
and the world witnessed one of the worst financial crises in global
history. In the United States, the stock market plummeted, unemployment
soared, and the economy was thrown into a recession. And many other
countries faced a similar fate. Has the world learned its lesson? Some
argue that the international framework for handling and responding to a
future crisis is lacking. Beyond that, they argue, there is reduced
market-making activity, less scope for reduced interest rates, and
increased government spending and borrowing. But others are more
optimistic, arguing that the past decade was one of recovery and reform,
with governments passing regulations to deal with failing institutions
and creating oversight infrastructure that shored up the banks. And,
they say, there are fewer sketchy loans on the books. Is the global
financial system more resilient? Or are we ill-prepared for next time?
Source.
