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.

Why the Financial Crisis and What Is the Way Out

Causes and solutions in dealing with the financial crisis
Carmen Reinhart
October 7, 2010

IMF Chief: Crisis Not Over Until Jobs Come Back

Nations must coordinate polices to regain control of corporations
Bjoern H. Amland
September 16, 2010

US Leapfrogs Sluggish EU on Financial Reform

The US sets pace on financial reform while Europe dithers
Wolfgang Reuter
July 20, 2010

Wanted: Competent Leaders With Vision To Tackle Global Crises

Markets spooked by leaders’ lack of courage before great challenges
Jeffrey E. Garten
June 3, 2010

The Web of Globalization

Severing global connections won’t resolve the economic crisis
Nayan Chanda
May 24, 2010

Behind the Drama in Europe Lies a Global Crisis

During economic hard times, national interest trumps cooperation
Edmund Conway
May 20, 2010

Fears Intensify That Euro Crisis Could Snowball

Global investors are wary about an expanding ring of borrowers
Nelson D. Schwartz, Eric Dash
May 17, 2010