As such, measures to repair and reinforce our financial sector must be taken along with the introduction of fiscal stimuli. In our great nation, banks remain a reliable source of financing for the business sector, and thus, tidying up and strengthening our banking sector must remain a priority for continuous implementation.
Moreover, the collapse of Lehman Brothers sent shockwaves through the global financial system leading to an unprecedented rise in uncertainty and risk aversion. This led to a further retrenchment in investment, trade and hiring and a globalised “Great Recession”. Government budgets went deep into deficit to offset this massive shock to nominal spending.