Steven Pearlstein: The global economy comes to the end of its string

Why is this happening?

Short answer: Because we never really fixed underlying structural problems in the U.S. and global economies that had been building for decades and caused the financial and economic crisis in 2008.

Those problems included a U.S. economy that was living well beyond its means, consuming more than it produced. They included an Asian economic boom that relied on intentionally undervalued currencies that led to massive buildup of dollar reserves and a massive credit bubble in the United States. And they included a new European system with a single currency and a single monetary policy but not the single economy that is needed to go along with it.

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Neil Irwin 05 Aug, 2011

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Source: http://feeds.washingtonpost.com/click.phdo?i=dc39eef3b08ad6e476b46de87d9c3919
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