The Transformation of the Financial Sector

The role of the finance sector had become much more important. Instead of it being a shock absorber, which it was really meant to be, it was actually becoming the source of the shocks rather than a shockabsorber. The boom and bust that I were just describing at the end of the 80s, early 90s, that was really a financial crisis. And you can go through and go through events like the third world debt crisis. That was a financial crisis too. Even the Asian financial crisis was a financialrisis. Unfortunately, it was one that did not involve very much debt. So that's why it remained, well, it still produced a recession in the US and Europe.