The evolving narrative of the events of 2008 represents a similar error in our understanding. The current metaphor seems to be that the global economy was hit by a "perfect storm" of disruptive forces late in 2008.

Sir, Lawrence Summers is certainly correct in asserting that the right focus of the European countries must be on restoring economic growth if they are to restore fiscal sustainability (“Growth not austerity is the best...

Sir, Edward Luce's description of the competing views in the US about both the financial crisis and a supposed "crisis of capitalism" was a caricature, particularly his discussion of the view he ascribed to the Republicans ("America's three views on the crisis", March 19).

Attempts at austerity and deleveraging in Europe have converted an economic problem into a political dilemma, with leftist governments rising against Germany's austerity-laced rescue packages. Germany now faces a tough economic decision that will involve choosing between a breakup of the current euro system and a movement toward a common fiscal policy in Europe.

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In the months ahead, there will be a renewed intensification of the European debt crisis that could have major implications for the US economy.

On April 13, 2012, the US Department of the Treasury released new cost estimates for the Troubled Asset Relief Program. Looking principally at actual and projected contractual cash flows, the document concludes that: "Overall, the government is now expected to at least break even on its financial stability programs and may realize a positive return." 

In this event, participants will review the Bhagat-Obreja paper and consider the role of uncertainty in major business decisions.