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Why Financial Crisis is good..

There is a sure trend to it. Virtually every financial crisis, has provided a good source of inspiration for better regulation and management.

The Southeast Asian curreny crisis of the '97, tought us the virtues of better governance related to risk management by the governments.

The current credit crisis, will ensure that the mortgage business will be taken more seroiusly and enough control procedures would be put up to ensure that this market does not fall the next time over.

The list could go on.


So does it mean that a crisis is good for the financial markets. Well if it is not god one could always argue that it is a good way for erring institutues to stop, ponder and take corrective actions. This adds to the collective knowledge on how to or how how not to run the markets.

2007

Comments: (1)

A Finextra member
A Finextra member 18 August, 2008, 05:02Be the first to give this comment the thumbs up 0 likes

Sort of like after each revolution or world war?

Somehow I think we need a better incentive for innovation, but I get what you mean. Does this mean we're in for a collapse of faith in the payments systems before we improve them?