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.

Making the Desert Bloom

Mexico suffers an economic slump
August 30, 2011

Top Indian Technology Firms TCS, Infosys, Wipro, Aegis and Others in US Are Going for Local Hiring

Help wanted: US workers targeted, trained and hired by India’s IT firms
Shruti Sabharwal
August 22, 2011

The Eurozone Fights for Survival – Part II

European nations that abandon the union would be pariahs in the financial markets
Joergen Oerstroem Moeller
August 18, 2011

The World Consequences of US Decline

Volatility and uncertainty threaten the globe
Immanuel Wallerstein
August 16, 2011

The Eurozone Fights for Survival – Part I

To avoid nasty surprises, Europe and China’s financial partnership should include public statistics
François Godement
August 16, 2011

Let Down by Politics

Politicians, more interested in vacationing than ending budget woes, unnerve markets
Nayan Chanda
August 15, 2011

Global Economy: Is Anybody in Control?

National leaders worldwide resist tackling job creation, growing imbalances and other economic crises
David Dapice
August 9, 2011