Why did the financial system perform so well, and what can be done to ensure the smooth operation of the financial system if wide-scale disruptions recur? These questions are receiving continued scrutiny within government agencies and among industry members, and are the subject of extremely useful discussions, which I think will result in a more secure and resilient financial system.
In the presence of an implicit or explicit government guarantee, market crash insurance prices may even fall when the guarantee is more likely to be activated. Thus, a fall in crash insurance prices could be mistakenly interpreted as a reduced risk, exactly when systemic risk is rising.