The U.S. economic crisis is seriously damaging both the financial system and the real economy. The crisis is systemic but the system itself is so complicated and the individual parts of it are so complex, that commentators, policy makers, and the general public are focusing on the details rather than on the big picture. This article offers a different perspective: an overview of the whole system, as if from 20,000 feet above it, that allows us to see the systemic nature of the crisis without being distracted by its complex details.

From that perspective one can gain an intuitive understanding of what is happening, and a framework for assessing the damage that is still ongoing as well as possible actions to deal with the situation.

Download PDF - Viewing the Financial Crisis from 20,000 Feet Up