Have a look at this article below by Paul Krugman that I recently read in the Guardian. It explains clearly and in an easy to understand manner, what in the US and its effect on the rest of the World.

I am a big fan of Paul Krugman. I took Political Science at Simon Fraser University and I read alot of his stuff. I love it and I’d love to hear your thoughts!

We all go together when we go

The first great financial crisis of the 21st century has begun. Nobel prize-winning economist Paul Krugman explains how it happened, and how it can be cured

We all go together when we go
The first great financial crisis of the 21st century has begun. Nobel prize-winning economist Paul Krugman explains how it happened, and how it can be cured

I’m tempted to say that the crisis is like nothing we’ve ever seen before, but it might be more accurate to say that it’s like everything we’ve seen before, all at once: a bursting real estate bubble comparable to what happened in Japan at the end of the 80s; a wave of bank runs comparable to those of the early 30s; a liquidity trap in the US, again reminiscent of Japan; and, most recently, a disruption of international capital flows and a wave of currency crises all too reminiscent of what happened to Asia in the late 90s.

Let’s tell the tale.

Read the rest of Paul Krugmans article on this site