"Revenge of the Glut" By Paul Krugman was published in The New York Times. The article explains how the world has ended up in the present economic crises. It states that the answers can be found in a speech Ben Bernanke, the Federal Reserve chairman, gave four years ago. “The Global Saving Glut and the U.S. Current Account Deficit,” explained that the cause was not in America but in the Asian financial crisis of 1997-98. Yet, America did get hit as well. American bankers, led the world by hiding risk and fooling investors.
Also, we are seeing a huge uprise in the saving glut. The worldwide poverty that has hit has made people resort to thrift and in turn that hurts our economy even worse putting us in a global slump. I think this article was written for the average person to perhaps better educate how this economic crisis started. Perhaps if the world had taken better precautions we would not have out done ourselves when it comes to our economy.
