Sucker punched by the invisible hand: the world financial markets and the globalization of the US mortgage crisis (original) (raw)

The paper examines the globalization of the US mortgage crisis and its impact on the world financial markets. It highlights that the crisis originated in the USA but had severe implications for advanced economies, particularly in Western Europe. The authors argue that the interconnected strategies of banks globally, particularly their heavy investment in American mortgage-backed securities, were instrumental in the rapid spread of the crisis, leading to systemic banking failures and significant economic downturns in multiple nations.