Second, nationalization and substantial use of public funds is inevitable when dealing with systemic financial crisis.
Resolving a systemic financial crisis requires recapitalising weak financial institutions and moving their bad loans from the private to the public sector.
For instance, the bank's latest Financial Stability Report, released on Thursday, warned that the euro zone's debt woes were threatening to ignite a systemic financial crisis, with all that implied for the economy.
How long will it be before UK and EU politicians recognise the real and systemic cause of this frightening financial crisis?
FORBES: How Change Fails: CEOs Focus On Symptoms NOT The System
The EU and the UK seem to be avoiding a systemic solution to the present financial crisis in favor of a tactical cure.
FORBES: How Change Fails: CEOs Focus On Symptoms NOT The System
To that end, the Society of Actuaries and the Casualty Actuarial Society hosted a call for essays, " Systemic Risk, Financial Reform, and Moving Forward from the Financial Crisis, " seeking to find solutions that would prevent a future systemic meltdown.
Mr Verberke said that steps would be taken to address the underlining structural imbalances which triggered the financial crisis in Europe, by introducing planned financial supervision and systemic risk assessments.
After all, the systemic effects of this financial breakdown have made this crisis extraordinary.
Meredith Whitney, a financial analyst who foretold the banking crisis, thinks America's states could be the next source of systemic financial risk.
Moreover, there is no evidence that the ILCs of non-financial companies played any part in the financial crisis, or that they pose any systemic risk.
The cost of bailing out those banks has stretched Ireland's finances to the limit, and elevated Greece's financial problems from a local crisis to a systemic threat.
The AIG bailout shows how hard it is for America's financial authorities to steer a straight course through a crisis that is piling one systemic threat onto another.
When the Financial Crisis Inquiry Commission issued its reports in January, they raised significant issues about systemic accountability, oversight, governance, justice, ethics and leadership.
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