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An essay is presented on liquidity crises. It offers a history of deep recessions in 1930 and in 2008 and examines liquidity crises sources including bank runs, moral hazard problems due to deposit insurance and the sunspots and contagion effects while arguing on the importance of theoretical concepts. The author relates that the U.S. Federal Reserve policy can help ease liquidity crises including bank regulations, deposit insurance and market liquidity preservation.

The article presents an analysis on mortgage-backed securities (MBS) and the importance skin in the game. It mentions the research comparing the performance of MBS for various types of issues wherein originators retain different degrees of loss exposure. The results suggest that retention of even modest loss exposure by originators is associated with lower loss rates on MBS and could reduce moral hazard. It adds that skin in the game matters for performance and in mixed or unaffiliated deals.

El artículo habla de la participación del sector privado en la prevención y resolución de crisis financieras en los países en desarrollo y una moción promovida por países industrializados con ese objetivo. Se explica la motivación del esfuerzo como una manera de mitigar la incidencia del supuesto «moral hazard» en los mercados financieros internacionales.