But surprises of that sort should be rare. However, a sustained growth performance within a range of that sort would represent a substantial step up from our experience through the 1960s and 1970s, and would place us somewhere near the top end of the OECD growth league.
When market conditions deteriorate, everyone rushes to close their positions, exacerbating market strains further, hence the fall in prices. The second dimension is the risk of liquidity mismatches when short-term funds cover long-term assets. Although this is fundamental risk of the banking business, it seems to have been underestimated.