Takatoshi Ito of Tokyo University has given a superb lecture comparing Japan and Asian crisis in 1990s with US crisis in 2007. I usually don’t read presentations as it misses the details but this one is really good.
He points to various similarities (quite a many) and differences (very few) between the three crises. It is full of useful facts on the 3 crisis and covers wide areas (mon pol, banking issues etc)
In the last 2 slides he says:
All the US advices to Japan (1997-2003) and Asia (1997-98) have to be taken seriously—for the US itself
–Avoiding moral hazard
–Stick to mark-to-market; transparency of balance sheet is important
–Hedge funds should be regulated
–Management should be purged immediately, when an institution essentially fails
–Keep pumping in capital to insolvent institutions and create a “zombie”is a bad solution
–“To big to fail”should be avoided
Maybe it is human nature to be objective and critical to others, but to be protective and optimistic to oneself
:-) Unfortunately, as key US policymakers have hardly changed there is no one to remind them of the lessons. They have been conveniently forgotten.