This study identifies five distinctive stages of the current global financial crisis: the meltdown of the subprime mortgage market; spillovers into broader credit market; the liquidity crisis epitomized by the fallout of Northern Rock, Bear Stearns and Lehman Brothers with counterparty risk...

This study argues that the severity of the current global financial crisis is strongly influenced by changeable allocations of the global savings. This process is named a wandering asset bubbleʺ. Since its original outbreak induced by the demise of the subprime mortgage market and the...

"The intensity of recent turbulence in financial markets has surprised nearly everyone. This paper searches out the root causes of the crisis, distinguishing them from scapegoating explanations that have been used in policy circles to divert attention from the underlying breakdown of incentives....