The orthodox models in use until 2008 did not include financial problems. It was assumed that everyone was responsible for their financial position. But in reality, nobody is aware of all the risks when they freely choose to put their savings in one asset or another, in one bank or other…it’s impossible to cover all the risks.
MADRID | April 21, 2015 | By Ana Fuentes | Seven years after financial meltdown, great concerns about sistemic risk remain. “We haven’t learned, bad practices are still there,” IOSCO’s David Wright recently told us. Structural changes in the banking system along with a prolonged period of negative interest rates have prompted to new dangers. Central banks are helping via QE programs, although “you can have monetary liquidity and yet have an insufficiency of market liquidity,” which refers to the depth of financial markets, IMF Financial Counsellor José Viñals points out.