This chapter examines the complex relationship between US risk power and subprime management. It shows that the massive extension of government liquidity necessary to protect funding channels and key firms required the tacit approval of global investors in the IBM, and set the conditions for the further expansion of US risk power in the post-crisis period. Moreover, it argues that post-crisis regulation mostly repeated earlier patterns of intervention, initiating another process of bank consolidation that ultimately provoked new patterns of market-based intermediation. The chapter surveys the post-crisis development of the international bond market and shows that state policy has, to some degree, greatly extended US financial power.
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