ABSTRACT. For over a year, financial markets have been in turmoil. Banks have been refusing to lend to one another. Companies and individuals have found it increasingly difficult to borrow money. Investors and pension holders have seen the value of their assets collapse. Making matters worse, government intervention has been largely counter-productive, helping to turn a financial crisis into an economic catastrophe. As the bailouts continue and calls for more regulation are heard around the world, we seek to review the origins of the crisis and consider which policies might better address the underlying problems.