We have to have wholesale regulatory reform. In the US, we’ll have to nationalise some institutions, one way or another. Savings rates have gone up already. We will have a nasty recession.” In some client presentations while in Australia, Golub offered up his 10 main lessons for investors from the crisis.

They were: 1. The paramount importance of liquidity 2. By the time a crisis strikes, it’s too late to start preparing for it 3. ‘Certification’ (relying on bond insurers, rating agencies and so on) is useless during systemic events 4. The importance of counterparty risk management 5. Structured finance vehicles have raised systemic risk 6. Investors in securitised products need to look through the data 7. The market’s appetite for risk can change dramatically 8. The market’s level of risk can change dramatically 9. Don’t let the market determine your level of risk 10. The nature of risk may be changing.