Drastic action

More than two years have passed since the problem of subprime loans – at the time confined largely to a single country – metamorphosed into a fully fledged global financial crisis within a short period of time. Massive liquidity provision and an ultra-easy monetary policy introduced by the central banks of all the major economies, alongside government bailouts for many financial institutions, has resulted in several parties believing the worst of the crisis is over.
Now that some market stabilit