In this article entitled Revenge of the glut by a man named paul Krugman who is a writter for the New York Times. The article talks about the global debt crisis and how it happened. This article was written to inform people about the global debt crisis and how it happened. The author points out a speech that Ben Bernanke who is the Federal reserve chairman a few years ago forshadowing what was to happen. The speech was entitled The Global Saving Glut and the US Current Account Deficit. In the speech Mr. Bernanke points out that the problem lied in Asia and that they had been importers of capital borrowing abroad to finance their development. and that most of the "glut" had gone to the United States. Asia had a financial crisis from 1997-98 which caused asia to export capital to the rest of the world. Most of the money went to the United States. The author points out that mr. bernanke said that the reason why this ended up in the United States was that the depth and the sophistication of the countries financial markets.
i think that like the author points out in the column that this can also be blamed on loosly regulated financial systems that is not asia's fault that is our own fault.
This was an interesting article about going back to how all of this got started and it was interesting to read about asia's involvment in the US economy. I think that it is a very informative article.
