Taking account of the magnitude of the problem of over-leveraging as evidenced by the balance sheet information recently released for LTCM, this can become a major constraint on the availability of new funds in the global financial market over the next year.
Against this background, the world can only extricate itself from this complex problem by a coordinated effort applied from three different levels: Firstly, many macroeconomic deficiencies were exposed in a number of countries that in the end suffered most from the global financial crisis.