Economic Crises Timeline – United States & Eurozone

The year 2008 marked the advent of a financial crisis that began with a subprime scandal and mistakes made by credit rating agencies followed by the excesses of a financial capitalism that got seriously off track. This included the dissimulation of risks, unverified and highly complicated financial instruments, legal loopholes and the persistence of tax havens attracting a share of world savings that would be more justly used to finance investments and growth.In 2008, IMF had reported that these terrible lapses will cost the international banking system about a trillion dollars in the long-term.

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The Base-ics of Basel

According to the BIS, “The choice of Switzerland for the seat of the BIS was a compromise by those countries that established the BIS: Belgium, France, Germany, Italy, Japan, the United Kingdom and the United States. When consensus could not be reached on locating the Bank in London, Brussels or Amsterdam, the choice fell on Switzerland. An independent, neutral country, Switzerland offered the BIS less exposure to undue influence from any of the major powers. Within Switzerland, Basel was chosen largely because of its location, with excellent railway connections in all directions, especially important at a time when most international travel was by train.”

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