It is submerging the interlinked archipelago of loosely affiliated entities, subject to varying degrees of regulation. Some of the regulatory links are so obscure and vulnerable to the sea level rise they have been quickly overwhelmed. Central banks, and even governments, have had to mount rescue operations, at unusually sympathetic rates, at great financial cost and at even greater moral hazard.
2  IMF World Economic Outlook, Update January 2016. 3  S Lo and K Rogoff (2015) Secular stagnation, debt overhang and other rationales for sluggish growth, six years on. BIS Working Papers No 482. BIS central bankers’ speeches  1  excessive finance, or is it another, more fundamental condition?