> Wasn't there also a "supply" factor,
> in an excess of money that needed to
> find new outlets for investment?
I replied:
> http://www.ft.com/cms/s/0/8c9dea94-3e30-11dc-8f6a-0000779fd2ac.html
>
> The surpluses built up faster as oil and
> other commodity prices went up.
> Somewhat analogous to the Eurodollar
> boom in the 1970s. (This "Euro-" prefix
> has nothing to do with the currency that
> got same name more recently.)
In today's FT, Martin Wolf has a column in which he exculpates the Fed from the credit bubble -- at least partially. He lays some of the blame on the "savings glut." The article is worth reading, because he breaks down the "savings glut" into its component parts. Unfortunately, I can't fetch the article online now. (If somebody can, please post.)