A joke popular in China in recent years tells of an old Chinese woman and an old American woman who meet in heaven. “Just before I died, I could finally afford to buy a house,” the Chinese lady says. The American responds, “Just before I died, I finally paid off my mortgage.”
Though premised on stereotypes of spendthrift Americans and frugal Chinese, the story helps explain how an imbalanced world economy lost its bearings.
Two dimensions of the crisis distinguish it from past economic disruptions and explain its tenacity. The first is the paradox of credit, which is simultaneously dynamic and destabilizing.… Seguir leyendo »