He said: "One can state, without exaggeration, that the observation of and the search for similarities and differences are the basis of all human knowledge." In saying this, he captured exactly what we need to do in case of turmoil, in case of a new shock to our financial system. Of course, every shock is unique. But often, there are similarities.
Recent analytical studies – largely based on empirical studies on US markets –suggest that repo and securities lending markets were indeed inherently procyclical and may have amplified liquidity problems during the global financial crisis.