You flew in after the news conference in Frankfurt yesterday. Overall we heard President Draghi talk about these risks to the downside, but how would you explain it in your words? Why did we not foresee this? We did foresee it, actually.
Also see Markus K. Brunnermeier (2009), “Deciphering the Liquidity and Credit Crunch 2007–2008,” Journal of Economic Perspectives, vol. 23 (Winter), pp. 77–100. 4  Bagehot also suggested that “these loans should only be made at a very high rate of interest” (Lombard Street, p. 99; see note 2).