Why this isn't another 2008

Financial markets have been extremely turbulent in the past week or so and the media is full of stories about the renewed financial crisis. While there are some similarities with the crisis of 2008, there are important differences. The share prices of financial stocks have been hit hard but so far, there is very little evidence of the sort of liquidity strains that beset the system three years ago. Central banks and regulators are much better prepared and can arguably act more decisively to alleviate any such strain. The credit markets have been much better behaved than in 2008, partl...