New York Times article "Revenge of the Glut" written by Paul Krugman is directed to the American audience. It informs us as American people that subprime lending and bad home loans are only part of the problem of our nations financial downfall, we're in a world of troubled borrowers. The global debt crisis is so widespread and the answer for it begins with our giant trade deficit which was suppose to be our capital inflows but ended up spreading money to other nations according to Ben Bernanke who is a Federal Reserve chairman. This caused many smaller European economies to thrive while most of global savings glut ended up in America. American bankers hid risks and fooled their investors giving American homeowners greater assets in their homes while currencies were strong but while assets disappeared the debt still remained causing manufactures to collapse mainly in the car industry.
Our nation has made many poor economic decisions and it has occurred over several decades it's not like we fell into this huge hole of debt overnight. Yes, Americans get money hungry and will do what ever it takes to make more or do whatever it takes for their company to strive without ever thinking about the downside but sometimes you have to find yourself in a huge hole before anything good ever happens. Although the glut is bigger than ever, we're all in hopes that one day there is a chance in saving it.
