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.

Worries About the World Economy for 2014

Growth limps along, at an uneven pace, as governments tackle big problems with uncertainty
David Dapice
December 20, 2013

America’s Role as Consumer of Last Resort Goes Missing

The US may be the most improved industrial economy of 2013
Simon Kennedy
December 16, 2013

Energy Subsidies Don’t Work, But Don’t Try Telling the Poor

The poor cannot afford global market rates
Tion Kwa
December 4, 2013

A Dangerous Interregnum

A power shift is underway and cannot be avoided
Roger Cohen
November 29, 2013

How Globalization Has Left the 1 Percent Further Ahead

The US pressures wages in Canada – and adds to widening inequality
Tavia Grant, Janet McFarland
November 28, 2013

Dollar, Default and Bretton Woods III

The US dodges default
Mike Dolan
October 17, 2013

The Gated Globe

National leaders avoid outright protectionism, but try to tame globalization
Greg Ip
October 17, 2013