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 Reinhart

Evidence Quote

the latest the latest round was the securitization of mortgages which made everyone very comfortable

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

My Notes

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