Preempting excessive behavior of market participants – the sharing of “common sense” I will now turn to the issue of whether there are ways to preempt the excessive behavior of economic entities and market participants. As previously mentioned, the current financial crisis grew out of the need for an adjustment of the imbalances that accumulated through the mid-2000s.
The creation of financial and economic excesses and their eventual adjustment is a cycle that has been repeated over and over around the world. In each of those cases, the causes and preventive measures were seriously discussed, and necessary improvements were made in terms of system and regulation.