SAS: From Dramatic Drought to Fluid Finance

The story of the global financial crisis is a well-told one – and it’s a story that highlights major shortcomings in liquidity risk management. the causes were the macro-economic imbalances that had developed over the past decade or so, along with high-risk financial innovation of little social value. this volatile mix was made worse by flaws in the capital and liquidity regulations governing banks, and a mistaken belief that markets were ultimately rational and self-correcting.

The effect