Omnishambles: the word that sums up the policy response to the financial crisis

The Oxford English Dictionary definition of Omnishambles:

A situation that has been comprehensively mismanaged, characterized by a series of blunders and miscalculations.

Usage:

The policymakers and financial regulators' ongoing choice of pursuing the Japanese Model is making an omnishambles out of the global bank solvency led financial crisis.

or 

The global bank solvency led financial crisis would not have become an omnishambles had policymakers and financial regulators' pursued the Swedish Model and required the banks to recognize upfront the losses on the excess debt in the financial system.