Practical analysis for investment professionals
13 November 2012

Current Thinking on the Financial Crisis and the Way Forward

Posted In: Economics, Philosophy

A great crisis can produce great leaps forward in thought and human achievement. So is there any evidence that the epic financial crisis of 2008 will leave a legacy of fruitful ideas for our financial system and investing just as World War II, the Cold War, and the Space Race led to stellar advances in technology?

Perhaps because it’s still fairly recent, there isn’t much consensus yet about what caused the crisis. Seemingly, we were wrong to blame bankers, put too much faith in corporate governance, were not properly diversifying our portfolios, and are probably wasting our time worrying about the euro. The good news is that future-proof solutions are being generated (according to our team of CFA Digest abstractors) and these revolve around better, simpler regulation, more robust investing techniques and improved tools for investors.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

About the Author(s)
Mark Harrison, CFA

Mark Harrison, CFA, was director of journal publications at CFA Institute, where he supported a suite of member publications, including the Financial Analysts Journal, In Practice summaries, and CFA Digest. He has more than 12 years of investment experience as a portfolio manager and securities analyst. Harrison is a graduate of the University of Oxford.

3 thoughts on “Current Thinking on the Financial Crisis and the Way Forward”

  1. Adam says:

    fruitful ideas inspired by the financial crisis: don’t spend what you don’t have, and don’t borrow what you can’t pay back…

  2. CFA Tutor says:

    Thank you for compiling this

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