The global crisis has spotlighted a number of problems. Some are well known (eg the fact that in some countries in the past the regulatory and supervisory approach was inadequate to address them). Others are relatively new. A comprehensive overview of the many issues facing public authorities has just been provided by Dr Reddy, with a thorough checklist of what has gone wrong, what is being done, and what direction we should probably be moving in.
I would like to focus on a more limited set of issues, which in my view are among the most telling about the weaknesses of the financial system today.
See also:
