Executive Insight – New rules for a new environment

The Great Recession of 2008 led to a meltdown in both credit and equity markets and the collapse of massive financial institutions, chief among them being Lehman Brothers. Governments had to intervene in order to avoid a complete meltdown of the global financial system — what many referred to as ‘the end of the world’ — but the sense of security and stability this allowed was a temporary veneer which is now quickly evaporating to reveal that the crisis is still boiling. The great economies of the world are suffering from grave fiscal and structural imbalances with no long-term remedy apparent. The United States economy is struggling, and the S&P’s downgrade of America’s once coveted AAA credit rating highlights the uncertainty surrounding whether Washington will be able to find a solution to its enormous fiscal challenges. The $787 billion economic stimulus package, passed in February 2009, did not have the desired