Firms and households know that ultimately they will have to bear the consequences of the painful measures needed to reduce debt. As long as it is unclear when the adjustment will occur and who will bear what fraction of the costs of adjustment, firms and households may delay their investment and consumption decisions, slowing down the economic recovery.
The act also requires centralized clearing of standardized over-the-counter (OTC) derivatives and introduces margin requirements for noncleared derivatives and other measures to strengthen the integrity and functioning of financial markets. Efforts to develop these rules have been progressing well.