In the financial markets, we are in the midst of a massive restructuring of credit flows and adjustment of risk premiums. After the recent experience, there is likely to be less reliance on securitization markets to intermediate credit flows and more reliance on banks and other intermediaries.
But those intermediaries are still rebuilding the capital and liquidity positions they need to substantially increase their participation in credit markets. As I noted, we have taken important policy steps to support financial institutions and markets and to restart the flow of credit.