After Hubris, Smoke and Mirrors Came the Downward Spiral: How Financial and Real Markets Pulled Each Other Down and How Can Policy Reverse This?

The article explores how the global economic crises has developed, what policies are being enacted to remedy the situation, and if these policies will be effective. It notes that the financial crisis in the U.S., which started in 2007, is deeply rooted in the decades of liberalization of the financial markets, that led to excesses and widespread misuse of those markets for rent-seeking. It discusses the monetary and financial solutions implemented by the U.S. since the economic bubble started. The role of the financial sector in solving the global economic crises is also explored.