The central objective of this note is to present a simple explanation of recent financial crises and,on that basis, to discuss some policy options for individual countries. Systemic policies are not discussed. More emphasis will be put on understanding the nature of these crises than on providing a list of policies. The note starts in Section II with a discussion of the current crisis,which has come to be known as the subprime crisis. The central point is that there is essentially nothing new under the sun. The level of financial sophistication has undoubtedly increased, but the subprime crisis is just the latest in a long series of bank runs. Section II will also discuss the impact of the subprime crisis on emerging market economies. It will offer an interpretation of a remarkable phenomenon that, surprisingly, is ignored in much of the debate, namely, that emerging markets today are, on average, faring relatively well. Section III will offer a brief summary of current research on emerging market crises, which highlights the role of balance sheet imbalances. [.....]