These developments, coupled with the negative carryover effect from 2015, caused GDP to contract for a third quarter in a row. Specifically, after the decline of GDP on an annual basis by 1.7% and 0.9% respectively, in the third and the fourth quarter of 2015, economic activity fell in the first quarter of 2016, both year-on-year (-1.4%) and quarter-on-quarter (-0.5%).
The principle of liability is violated, and we have returned to the point where my argument began. The crucial question at this point is: what do we need to do in order to restore the principle of liability? The decisive point is that banks must be able to fail without dragging down the entire financial system with them.