It’s easy to forget that the crisis was on a long fuse and not a short one. From the start of the crisis to the stock market bottom was a period of just over two years. If we say the epicentre of the meltdown was the stock market bottom, on 9 March 2009, then we can say “Happy 5th Birthday, Dear Financial Crisis”. But in fact it’s just over seven years since the waters originally broke at HSBC, in February 2007.
Interestingly, and perhaps worryingly, the banks are still in recovery mode. Many are shrinking their balance sheets as they continue to work off bad assets, and struggle to meet new and much tighter regulatory capital requirements. ..