We are talking about the worlds economic situation in this article written by Paul Krugman in the New York times. Why/how did we get into this situation and how do we get out? Krugman belives it all started outside the US beging mostly in Asian in the 1990's. The real estate market is another cause of some of the problems we are seeing worldwide. The real estate market effects every other market to me. if the housing market is bad then people don't want to buy cars, go casual shopping, go to the movies, or go out to eat, therefor their is not as much money going out into the market to support the workers and it is just a downward sprial.
Krugman says that part of the problem is the "saving glut." Gluttony I belive is part of the problem, but not from those who save money. From people who wanted more then they could afford, from houses, cars, clothes, handbags, all of that. And like anything else living a life style you can't afford will catch up with you eventually, and the fallback from that is what is happening to our economy.
