Understanding the Great Global Contagion and Recession
The Great Global Contagion and Recession was largely the result ofa sustained global savings glut combined with excessive monetaryaccommodation by the Federal Reserve and other central banks. Thesetwo complementary and reinforcing forces artificially depressed theprice of risk globally, leading to the widespread mis-pricing ofassets and misallocation of investment. These effects were enhancedby rapid financial innovation and breathtaking arrogance of leadingfinancial market participants in believing that they understoodthese innovations.
Source: heritage.org
