A return to normal?
The US has detoxified the debt that caused its financial crisis. The challenge for the EU is greater
Appeared in print on 15.11.2012
A financial crisis erupts when a large volume of financial assets suddenly appears risky and investors want to get rid of their holdings. These assets become ‘toxic’ – not simply risky, but carrying a risk that cannot be quantified. Given that their risk cannot be calculated, their owners just want to sell them – sometimes at any price.