Global Financial Crisis: Inequality, Debt, and Bailouts Threaten Future Stability
The Global Financial Crisis in 2007 was caused by rising inequality, high private sector debt, financialization, deregulation, and tight fiscal policies. The economy's transformation over time mirrored conditions that led to the Great Depression. The US government, especially the Federal Reserve, played a major role in bailing out the financial system, extending the safety net to big institutions in unprecedented ways. This bailout poses challenges for the future.