It appears that people around the globe are gradually coming to understand the implications of the massive credit bubble and its burst through the bitter experience during the current crisis. First, in terms of “the recognition of the problem”, for example, the estimate by the IMF on the total losses on U.S. credit-related debts has been increasing as time went.
That typically suggests that the impact of an adverse feedback loop between the financial system and the real economy has also been underestimated in the current crisis. Second, there have been the issues related to accounting and disclosure standards. While the standards have improved compared with those of Japan in the 1990s, there are some new issues.