Global Finance Facts That Were Unspeakable Just 5 Years Ago

Gillian Tett has a brilliant article on FT about the “sacred cows” of finance that have been sent out to pasture over the last 5 years and the new line of thinking that has evolved:

1. Bigger is no longer better
2. Finance is no longer viewed as self-stabilizing
3. We now know that taxpayers are on the hook when finance goes wrong
4. Leverage matters
5. Liquidity matters
6. Bubbles form
7. Structural solutions are not taboo
8. Shadow banking should not remain in the shadows

To this, I will add:

1. Policies always have unforeseen side-effects
2. Regulatory arbitrage happens faster than regulation

Source: Ideas adjust to new ‘facts’ of finance

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