While few predicted the financial catastrophe, almost everyone has an explanation as to why it happened. To economists, it all seems painfully simple. Too much foreign money was flowing into the US from the Asian countries especially China. The availability of easy credit meant that too many people borrowed to buy properties that they could not afford. The bankers bundled up these loans and sold them to investors that could not understand the complexity of these bundles and the risks inherent in them. Once US borrowers started defaulting on their mortgages, they lost their houses and investors all around the world, including banks and hedge funds, lost their investments. For the critics of Bush administration, the government failed to regulate the activities of the banking behemoths. For the Fed critics, the crisis resulted from Alan Greenspan’s policy of keeping the interest rates low for an extended period of time. Given the ongoing nature of the crisis, many complicated explanations will surface in the years to come. Yet the root of the economic depression might very well lie in one fundamental human instinct: greed.

Spiegel: Germany Prepares for Coming Tax Battle

Christian Reiermann
February 15, 2017

Mexico Can Thrive Without Trump

Ernesto Zedillo
January 29, 2017

China’s Attempt to Export Its Way Out of Glut Threatens World Economy

China’s stimulus push during 2008 financial crisis protected jobs worldwide, but now threatens steel and aluminum industries
Börje Ljunggren
August 11, 2016

We’re in a Low-Growth World. How Did We Get Here?

Some economic trends are not readily apparent as they unfold
Neil Irwin
August 8, 2016

Greece’s Russian Fantasy; Russia’s European Delusion

Russia is in no position to rescue Greece
Pavel K. Baev
July 10, 2015

Pages