Assignment #6 J. Norman

Revenge of the Glut was written by Paul Gruman of The New York Times. The purpose of the article is to pin-point the specific reasons America originally went into debt. The answer, he suggests, can be found in a speech made by Ben Bernanke, the Federal Reserve Chairman. In his speech, "The Global Saving Glut and the US Current Account Deficit", Bernanke states that the causes lie in Asia not America. After the Asain financial crisis of 1997-1998, these countries began protecting themselves , in effect exporting capital to us along with the rest of the world. With financial systems being loosely regulated caplital inflows covering trade deficits, our countries debt became horrific the economy going down with it.