Keyword

Subprime mortgage, multiple bubbles, bailout, securitization, leverage

Abstract

The recent global financial crisis calls for a financial structure both at national levels and international level devoid of instability. First, the authors try to analyze the causes of the current crisis and the current financial scenario in major countries .Then the current financial system in the major economies and the associated drawbacks are dealt with. Finally, an attempt is made to evaluate the model and strategy suggested by the UK financial authorities in overcoming any future crisis along with experts' observations. It is noted that given the severity of the recent crisis, there should be a coordinated and collaborative response by the various actors of the financial structure to meet the challenge. This is so far not seen. It is thus apt time for international financial structure modification. Policy mistakes this time can prove to be detrimental in nature for the society as a whole. Suggestions from international bodies, economists, practitioners and other stakeholders must be taken into account before coming to any conclusion regarding changes in the financial structure along with proper supervision-national and international.


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