Exact(25)
Paul Myners agrees that they were now "very close" to "a series of dominoes falling" and "a systemic collapse of the banking system".
The current crisis, caused by a systemic collapse in the financial system and compounded by major economic imbalances between debtor and creditor countries, will change the world economy.
Less than three years after a systemic collapse of the U.S. financial system that led to taxpayer bailouts and plummeting share prices, Wall Street stalwart John Corzine drove the company off the cliff.
"You're looking at a health collapse, a systemic collapse".
But banking crises vary: some threaten a systemic collapse whereas others are containable.
Money-supply "shocks", like the disappearance of Mt Gox, could set off a systemic collapse.
Similar(35)
After all, it seemed to imply that the Federal Reserve was standing behind the banks to prevent any systemic collapse.
This is a growing problem: as finance becomes more intertwined, the potential for a countrys debt default to trigger a larger systemic collapse becomes even more tightly linked.
Previously it was just based on calculating insurance domestic deposits, a formula first conceived in the 1930's to deal with a previous systemic collapse.
If the goal was to avoid a complete systemic collapse of the financial industry, that may very well have happened".
"We are in danger of a broad systemic collapse, and action needs to be taken urgently to head it off," he said.
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