The too-bigto-fail problem could be mitigated if smaller, dynamic firms seized market share from less nimble incumbents. This is no pipe dream in 2010. Many old relationships between firms and clients were uprooted during the crisis. Customers – institutional and retail – are seeking new ways of doing business and new firms with which to transact.
The pandemic also severely disrupted the global production and distribution of goods, leading to large backlogs at ports and widespread shortages of materials, most notably semiconductors. The imbalance between supply and demand for goods resulted in a sharp increase of prices.