Revisiting the financial crisis

An interview with HUANG Ming (黄明)
Professor of Finance at the Cheung Kong Graduate School of Business and the Johnson Graduate School of Management at Cornell University

Recently, the media and commentators have saturated us with talk of the subprime-induced financial debacle. Yet, some basic questions remain unanswered: why did almost all of the “market doorkeepers” fail to function in the crisis? Why did the financial intermediaries, such as investment banks selling complex derivatives, go under? Why did the crisis cause such far-reaching repercussions? What seed did U.S. Treasury Secretary Henry Paulson sow for the fiasco to rage globally? What does the future hold for financial regulation? In the face of the tempestuous “financial tsunami,” what lessons should China learn and how should the country develop a more secure capital market?
Unlike other macroeconomists, Dr. Huang Ming proceeds from a micro perspective to sort out the financial mess along the logical chain within the capital market. In this interview, Dr. Huang presents a clear and unsettling look at the breakout, transmission and spreading path of the financial crisis.