Can the centre hold?
Despite the inevitability of tighter and more intrusive regulation, David Rowe argues this alone will not prevent future financial crises as long as 'too big to fail' remains an issue
An unfortunately consistent characteristic of history is a tendency for public attitudes to swing sharply, with such movements based more on emotion than on reasoned analysis. Once a trend is under way, it is eventually pushed to an extreme. At some point, a crisis precipitates a reaction and the pendulum of public attitudes suddenly reverses course. Quite clearly, we have been in the early stages of such a reversal since the market meltdown last September.
For much of the past 25 years, markets
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