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King and Bernanke's Unexpected Futures
- Mervyn King shared memories of working alongside Ben Bernanke at MIT before either led central banks.
- Neither imagined becoming central bank governors or managing a global crisis together.
Crisis Shocker and Bank Rescue
- The 2008 financial crisis shocked even central bankers due to the collapse of the US banking system.
- Recapitalization and stress tests were crucial to stabilizing banks and ending the crisis phase.
Financial Stability Is Not Cyclical
- Stability leading to instability is too simplistic a view of financial cycles.
- Financial crises are unpredictable and patterns identified retrospectively don't reliably forecast the future.