Instead, most of these troubles result from problems in information disclosure or the pricing mechanisms, or because the design of the mechanisms implied moral hazard. Fifth, flexibility and adaptability must be improved. In dealing with the crisis it’s important to realize the fluidity of the situation and thus the need for a nimble response.
The Governor of the Bank of England was criticized for his response to the Northern Rock on the floor of Parliament, where he was blamed of changing his position over a few days. In fact, financial markets are fast changing, and judgments must be made according to specific conditions. It’s normal for one’s conclusions to be updated within a few days.