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.

Cross-Border Banking in the Balance

Eurozone economic crisis endangers gains from financial integration
Erik Berglof
November 16, 2011

Painful Euro Crisis and Lessons for the World – Part I

As the world watches, Europe battles to contain burgeoning debt and restore confidence
Jacob Funk Kirkegaard
November 16, 2011

Europe Close to Creating “Budget Tsar”

Plan would let one commissioner block spending; some member states fear dwindling power
Joshua Chaffin
November 15, 2011

Why Italy’s Days in the Eurozone May Be Numbered

A depreciated lira may be Italy’s only option
Nouriel Roubini
November 11, 2011

“Playing Baseball Without a Bat”

An interview with Thomas L. Friedman on his book ‘That Used To Be Us’ and global issues
Thomas. L. Friedman
November 9, 2011

Denying Imbalances, G20 Risks Chaos – Part III

G20 failure compounds financial woes, with consequences for every facet of globalization
Jonathan Fenby
November 9, 2011

Denying Imbalances, G20 Risks Chaos – Part II

Chaos isn’t just a Greek word as the G20 fails to address unmanageable debt
David Dapice
November 7, 2011