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.

Lessons From Athens

Global funds fuelled Greece’s wealth, debt – and subsequent rescue
Nayan Chanda
May 12, 2010

Greek Crisis and the Future of the European Union – Part II

Mistrust threatens cooperation among nations and EU survival
Jean-Pierre Lehmann
May 7, 2010

Greek Crisis and the Future of the European Union – Part I

Severe imbalances and soaring debt suggest more members may require rescue
Jonathan Fenby
May 5, 2010

Debt and Unemployment: Is Global Capitalism Responsible? – Part II

Lingering high joblessness in US threatens global prosperity
David Dapice
April 26, 2010

Debt and Unemployment: Is Global Capitalism Responsible? – Part I

Politicians propose reforms but it’s the global market that disposes
Jeffrey E. Garten
April 23, 2010

Beijing Is Key to Creating More U.S. Jobs

China's currency, a global problem in need of a global solution
C. Fred Bergsten
April 22, 2010

A Greek Tragedy Haunts the World – Part II

While its impact complicates US recovery, Obama needs to engage with Europe
Bruce Stokes
March 3, 2010