This article was written by Paul Krugman, and printed in The New York Times. I think this article was written to enlighten its readers to the fact that the economic crisis we are in now was not solely the because of the subprime lending. I think it was directed to mainly the general American public, but it is also good information for anyone.
Krugman says that the answer to how we got into this crisis can be found in a speech made by Ben Bernanke. In the speech Bernanke says that after the Asian financial crisis of 1997-98, the Asian countries wanted to save up foreign assets so they basically started exporting money to the rest of the world. This put a lot of cheap money into many countries, but mainly into America. As Krugman states, it caused an illusion of wealth, but when the bubble burst, the assets were gone leaving an all too real debt to other countries. Now everyone wants to save as much as they can and this Krugman says results in a global economic slump that. Desire to save exceeds the willingness to invest and it is causing more of a slump.
