Nearly two years after the outbreak of the credit crisis (which may be dated to March 2007 when
major losses were announced by the U.S. subprime-based investors Accredited Home Lenders
Holding and New Century Financial), key issues remain to be resolved. At the most basic level
the questions are two. What caused the crisis? And in light of one’s answer to this first
question, what should be done to minimize the risk of repetition if not of identical events then at
least of something similar?