And a new equilibrium will take shape only when financial institutions seize new opportunities and the changes in the rules of engagement and the relationship with the official sector are more clearly understood. Third, I will discuss actions of the official sector during this period of turmoil.
The rationale for any one participant in pushing the price further away from its fundamental equilibrium was often along the lines of the “greater fool” presumption – however artificially high the price, someone would pay more for it later.