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Complexity and the forgotten lesson of the financial crisis

It has been a decade since the first signs of the financial crisis hit world markets. What does it tell us about today’s politics?

By Jay Elwes  

A general view of the RBS (Royal Bank of Scotland) Head Quarters near Edinburgh. RBS said today that it was consulting unions over plans to cut up to 9,000 jobs in the next two years - of which 4,500 will be in the UK.

Read more: The secret history of the banking crisis

In the summer of 2007, several bank-run hedge funds trading in mortgage-backed securities announced to the startled financial world that they had gone bust. It turned out that the mortgages that backed up those securities weren’t worth what people thought.

The initial result was panic, as financiers confronted the unsettling possibility…

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