What can governments learn from the subprime credit-crunch banking crisis?
Government can learn how to come up with simple solutions to stop the decline in housing foreclosure, and provide more liquidity to assist businesses in alleviating the credit crisis. Simultaneously, it can enforce strict requirements on banks to be more robust in preventing the abuse of gambling away assets. Government can learn above all else, that banks cannot be trusted to regulate themselves. With the moral hazard of free market, the government must take the initiative and discourage reckless behavior.
