So, apart from the similarities with earlier crisis episodes, what makes this crisis special? Let me stress two striking features: •  First, many of the risks that crystallised in the past year were on our radar screen long before the crisis started.
If you read the numerous Financial Stability Reports that were published in the past years, including our own Overview of Financial Stability, you will see several analyses about excessive risk tolerance, hazardous risk transfer mechanisms and possible shortcomings of the originate-to-distribute model. One of the key lessons is why we have not been able to translate our risk assessment into mitigating action.