Crashed: How a Decade of Financial Crises Changed the World

by Adam Tooze

To turn the discussion in a more positive direction they proposed a short five-point plan: There would be no more failures of systematically important institutions. There would be measures to assist recapitalization. They would work to unfreeze liquidity in interbank markets. They would provide adequate deposit insurance. They would rebuild markets for securitized assets. As a surprise treat for the finance ministers, President Bush made an impromptu appearance to add some easy charm to the discussions. Unfortunately, Bush’s remarks were not well calculated to reassure his guests. “You folks don’t need to worry,” he told them. “Hank’s got a handle on this. He’s going to freeze that liquidity.”90 Given that TARP was still in limbo and that freezing liquidity was the last thing anyone needed, it can hardly have been comforting.