Many economies have been affected by the global fi- nancial crisis following the subprime mess. Many investment bankers have collapsed and some insurance majors have even downed their shutters. The originate and distribute model in the home mortgage market of the US has proved to be a disaster as the securitization process is faulty. In an environment of low interest rates and high liquidity, financial intermediaries have generally embraced disproportionate risks, causing booms in the asset market which have busted subsequently.

There were severe credit and liquidity crunches resulting in global recession/slowdown. Many economies have generated economic stimulus packages and widened fiscal deficits considerably. There have also been initiatives by G 20 nations and later by the newly created Financial Stability Board (FSB) to tackle the crisis.

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