In the New York Times, Paul Krugman writes, "Revenge of the Glut", an article about the global debt crisis and how it began. Krugman says that the answers to how the crisis started and why it is so widespread can be found in Ben Bernanke's speech entitled "The Global Saving Glut and the U.S. Current Account Deficit". According to Bernanke, the causes of this crisis are found in Asia, not in America; when Asia had their financial crisis in 97-98, they basically exported money to the rest of the world in order to protect themselves.
The money from Asia went into other countries besides America as well. Three countries in "deep crisis now" are Iceland, Ireland, and Estonia (a small country in Northern Europe). At the end of the article, Krugman states a way to look at the situation, ".. around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off." and likes to call this situation "the revenge of the glut."
