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Raghuram Rajan is seeing troubling signs
Back in 2005, Raghuram Rajan, then the economic counselor at the International Monetary Fund, stood up at the annual meeting of prominent economists and bankers at Jackson Hole, Wyo., and gave a presentation that his listeners could never have expected. The global economy was booming, but Rajan argued that increasingly complex markets, which spewed out complicated instruments like credit-default swaps and mortgage-backed securities in ever greater quantities, had made the financial system more vulnerable to collapse.