By far, the most frequently asked question (FAQ) today is whether the worst – in terms of the financial sector meltdown, and in particular, failure of financial institutions – is behind us. No one is really willing to take a definitive call on this, which is a sign of the increasing number of unknown unknowns.
Even as recently as six months ago, there was a view that the fallout of the crisis will remain confined to the financial sector and that, at the most, there would only be a shallow recession in the advanced economies. These expectations, as it now turns out, have been belied.