When You’ve Seen One Financial Crisis…

Financial market crises may differ, but severe banking crises typically share many common features. The most recent crisis shares many features with the US Savings and Loan crisis of the 1980s and early 90s as well as some features of the LTCM crisis of 1998. More generally, banking crises are commonly associated with real estate market collapses. Effectively reducing the risk of future crisis requires some combination of reducing the potential size of real estate market collapses and the banking sector's exposure to real estate losses. Les crises des marches des capitaux peuvent differer, mais les crises bancaires graves partagent en general de nombreuses caracteristiques. La crise la plus recente ressemble a de nombreux egards a la crise americaine de l'epargne et du credit (Savings and Loans) des annees 80 et du debut des annees 90, ainsi qu'a la crise LTCM en 1998. De facon plus generale, les crises bancaires sont souvent associees aux effondrements du marche immobilier. Pour reduire efficacement le risque de crises futures, il faut reduire l'ampleur potentielle des effondrements du marche immobilier, diminuer la vulnerabilite du secteur bancaire aux pertes du marche immobilier, ou les deux.