Mr. Klaus Regling:

As the report states, this was indeed the problem. It was a failure of all those involved. The only way to understand it is to think back to the time when there was great moderation, economic developments seemed fantastic, there was strong growth and a growth rise in the standard of living without an increase in headline inflation and as prices, including housing prices but not only those, went up, it was not seen as such a problem at the time. Today, it is seen as more of a problem. Macro-prudential tools were not well developed and were rarely used, although they existed. All these things are different today. We have learned from this but at the time it was not the case and that was not only here but also in other countries.