IMF - threat to financial stabiity increased

--Though global economic fallout from the U.S. subprime-mortgage crisis is likely to be protracted, govenrments shouldn't rush to regulate everything --Threat to financial stability increased largely because of uncertainty over how credit problems are transmitted globally and how deeply the credit crunch will bite around the world --In good times, the complexity of the financial system helps spread risk among institutions and countries -- lessening the possibility that any one sector will be battered. --In bad times, this complexity makes it hard to figure out where problems will materialize --IMF is trying to help prevent future crisis by highlighting potential problems ahead of time. --The new element in the glboal economy is the complexity of the financial system, such as MBS.