Crisis predictable, mirrors previous episodes: BIS

Economists at the Bank for International Settlements (BIS) have found that the current financial turmoil was, like other bouts of market stress, preceded by easily identifiable build ups in credit expansion and risk-taking.

Claudio Borio, the head of research and policy analysis at the BIS, and Mathias Drehmann, an economist, argued in research published on Monday that the current crisis, like others, could have been foreseen by analysing "unusually strong" rises in credit and asset prices. S