Some of these are not necessary at this time, some cannot be implemented on a practical basis, and some would cause more harm than good. In any event, the importance of the required change in fiscal policy far outweighs that of the changes mentioned above.
1 One of the areas of the market that suffered the greatest impact from the crisis was asset-backed securities, due to the loss of investor confidence in this asset class globally. This resulted in the stock of outstanding Australian asset-backed securities nearly halving, in nominal terms, and declining three-fold relative to GDP since mid 2007.