The Verdict on the Global Financial Crisis
Martin Wolf, Financial Times | January 22, 2009
The solution to the financial crisis -- probably the product of excess supply and demand due to “huge asset price bubbles” -- may lie with a simple economic equation: “at world level, supply must equal demand.” ++ President Obama should move towards this adjustment, propose the creation of a consumer based economy in China, divert global surplus capital into developing economies and support their net borrowing requests. ++ The survival of the global economic system seems conditional on ending dependence on “bubbles.”
