Stabilisation is of particular concern during a crisis, yet allocation and the preservation of appropriate incentives in a market economy are crucial. It might be necessary to bear costs now to prevent even higher costs from emerging in the future. Hence, when evaluating policy measures we have to make a clear distinction between the actual crisis and its aftermath.
The financial crisis was caused by a cocktail of shortcomings in different areas, such as regulatory loopholes, monetary and fiscal policy mistakes, macroeconomic imbalances and insufficient risk management practices in systemic financial institutions in an environment of dynamic financial innovations. Thus, I would be very sceptical regarding overly simplistic explanations for the crisis.