In 2006 and 2007 I said – on behalf of the Governors of Central Banks meeting in Basel – that the quantity of risk and the price of risks were underestimated in global finance. Spreads were very low, risk premia were abnormally meagre and volatility was very modest.
This called for a market correction and we asked market participants to prepare for that market correction. You forecast the crisis? Not the extent and the depth of this global crisis. But if anyone saw warning signs and voiced them, it was the central banks.