The International Financial Crisis

Lawrence H. White's analysis of the current financial crisis focuses on the real estate credit market in the United States. He describes how at the beginning of the problem, financial institutions acted irresponsibly; seeking ever greater income without regard for how their actions would affect the entire world's financial system.  He describes the United States government's intervention in the crisis, through the Federal Reserve System, that was designed to bailout critically affected financial institutions, especially banks.  Through semiprivate entities, the Federal Reserve attempted to absorb the damage that had been created, but arguably as they saved the banks, they continued to feed the fire of this crisis that had been growing since 2001.

Versión en español La crisis financiera internacional