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.

Challenging Globalization

In the US, big dreams fall by the wayside, leaving a trail of anger
Nayan Chanda
January 24, 2011

China and the EU: Building a Reciprocal Relationship

With the eurozone crisis, China becomes Europe’s lead rescuer
Doug Saunders
January 21, 2011

The Markets Prey on Debt-Laden Nations

The US is next for the chopping block as global investors demand higher interest rates
Joergen Oerstroem Moeller
January 17, 2011

Lessons Learned, South Korea Makes Quick Economic Recovery

The US should follow South Korea’s model by enacting swift financial reform
Martin Fackler
January 17, 2011

Tunisia Protests Serve Warning to Autocratic Regimes

Fury about unemployment and corruption grows in Tunisia and other nations
Kristen Chick
January 14, 2011

Running the World, After the Crash

International cooperation is stalled
Richard Samans, Klaus Schwab, Mark Malloch-Brown
January 13, 2011

Asia: Eastern Billions Can Still Join the World

India and China prepare to become the focus of globalization 2011
Nandan Nilekani
January 5, 2011