Neuroscience tells us we are pattern seekers and our brain thinks that "Two is a trend – three a rule." How many crises like this have happened? Three if you count the S&L crisis in the early 1980s, or two, 1929 and the current one. Regulation of the financial markets is a lesson learned from 1929 and overtime optimism takes over rational caution.
Will the politicians/regulators follow the rule below for the U.S.?
Rule No.1: Appropriate regulation and oversight is needed for a well-functioning financial market in the U.S.
Rule No.2: If you consider deregulation, refer to rule N0.1.
Magnus: China Must Reform or Bust - China's debt markets are looking more and more like the West, circa 2007. And it's not clear the government can intervene as successfully.
1 hour ago