The Lesson of History in the Global Financial Crisis

Is that the lesson of history as well? Do you think in a sense that when you get these situations, one side is arguing for aggressive responses and the other side is cautioning about moral hazard. That played I guess during the global financial crisis as well. Is that, have we learned that lesson with Lehman that this is when you get a situation like this that you're actively straight away and then worry about the consequences later? Yeah. So my reading of the history is there is moral hazard risk and there is meltdown risk. And the first task for regulators and other officials is to deal with the meltdown risk and then turn and deal with the moral hazard risk once the conditions have stabilized.

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