chapter  7
22 Pages

The Global Capitalist Crisis and the Rise of China to the World Scene

In 2008, the subprime mortgage crisis in the United States has grown into the deepest economic crisis since the Great Depression. The crisis is no longer simply confined to the financial sector, but has spread to the larger global economy. The crisis is still in the process of unfolding and the high-profile bankruptcies of investment banks like Lehman Brothers and insurers like AIG only marked the beginning of the broader capitalist crisis. The 2008 crisis not only marked the end of the golden era of unbridled free-market economics in the United States, but could also serve as the turning point of the capitalist world economy.