Since the summer of 2008 the world has experienced the greatest destruction of wealth – paper losses measured in the trillions of dollars – in its history. No industry in the world has been left untouched. The financial powerhouses of Bear Stearns and Lehman Brothers have gone bankrupt and mortgage giants Fannie Mae and Freddie Mac had to be bailed out. Attempts by the US government to save industries led to an increased budget deficit, making some experts predict that the global power epicenter might shift away from the US before the crisis ends. On the other hand, it has become clear that Asian countries need to restructure their domestic economies to encourage consumption. They cannot continue to rely on credit-fueled American consumption to promote growth. Consumer confidence remains low with fears of a double-dip or an anemic recovery being voiced daily. Some poor countries, insulated from foreign finance, suffered from reductions in tourism, remittances and foreign aid. What began as a local problem of excess credit in the United States is likely has affected every member of the global community. All crises in the twentieth century have had world-wide consequences but the crisis of 2008 will go down in history as the first full-blown global crisis.

Irredeemable?

The world’s seventh largest economy – Brazil – is flailing
January 8, 2016

The World's Multi-Trillion Dollar Bond Market Is Circling the Drain

Risk moves throughout the global system, and some holders of corporate debt are nervous
Ben Wright
November 23, 2015

Crisis Without End: The Disintegration of the European Project

Historical precedents, the breakups of Austria-Hungary and Yugoslavia, suggest that a collapse of the EU is not unthinkable
Brendan Simms and Timothy Less
November 14, 2015

Surge in Protectionist Measures Blamed for Sapping Trade

China, the European Union and the United States are among the biggest targets
William Mauldin
November 13, 2015

Is the USDA Silencing Scientists?

Government entomologist was blocked from presenting research on how pesticides affect monarch butterflies
Brandon Keim
November 3, 2015

China Abandons One-Child Policy

The announcement lifted stock prices for foreign firms that make baby products
October 29, 2015

Live Longer, Consume Less: Recipe for Slow Growth

Longer life expectancy, uncertainty, environmental awareness are among five behaviors that reduce consumer spending
Joergen Oerstroem Moeller
October 20, 2015