Lessons from the financial crisis: A twin-track response

The credit crunch has unleashed widespread anger outside the financial sector. And rightly so. Not only have taxpayers had to bail out an industry that is uncommonly well rewarded. But the effects of the credit crunch on the real economy are likely to be painful and prolonged – not least on the jobs market. Main Street, as Americans say, will pay dearly for the mistakes on Wall Street. Unsurprisingly, a fierce debate is now raging about how the world got itself into such a mess – and how it should avoid doing so again in the future.