The most common feature across crises is not the specific instrument or regulatory gap (which is idiosyncratic—derivatives in Mexico, securitization of mortgages in the U.S.) but that regulation and supervision consistently lag behind financial innovation; innovations like derivatives or securitization are introduced as risk-reducing but regulators are caught unaware.
causalpending
Speaker
Carmen ReinhartEvidence Quote
“the latest the latest round was the securitization of mortgages which made everyone very comfortable”
Created: 6/15/2026, 9:20:19 AM
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