Financial Institutions: Change Now Or Become Sisyphus

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Executive Summary

The author would disagree with the view that the current credit crisis was an entirely unexpected incident in the otherwise thriving economies. Rather, the author would argue that the foundations for the crisis were laid long before the crisis began to take hold. Effective economic systems are characterised by prudent financial policies and proper regulatory structures; they should not be controlled by a "Members only" club whose actions go wholly unchecked, in the way in which our financial markets appear to operate. This has given rise to an entirely inappropriate behaviour on the part of many financial institutions, such as the excessive number of sub-prime mortgages extended in the US to people who were unable to afford other types of home loan.

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