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Anyone who worked in finance at the time will have vivid memories of August 2007 .That opacity helped to transform the deflation of an asset bubble into a global credit crisis.In the preceding years, global imbalances and low real interest rates sent capital hurtling into the US housing market, which was seen as a one-way bet. A newly minted mortgage-asset securitisation industry had turned the borrowed capital into very liquid but little-understood securities.Financial crises end because market prices for tainted assets are established and credit flows again.The people who owned those rental homes a decade ago, and lost them to the crisis, have had a bad 10 years.The financial system looks a lot like the pre-financial crisis one.The uneven nature of the recovery compounds the most important legacy of the crisis.The crisis of legitimacy goes on.
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