Many+Fault+Lines+in+Crisis - Professor Finds Many Fault...

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Professor Finds Many Fault Lines in Crisis By DAVID WESSEL The Wall Street Journal April 22, 2010 University of Chicago's Raghuram Rajan, seen here in Malaysia last year, sees the roots of the financial crisis as global. The left has figured out who to blame for the financial crisis: Greedy Wall Street bankers, especially at Goldman Sachs. The right has figured it out, too: It was government's fault, especially Fannie Mae and Freddie Mac. Raghuram Rajan of the University of Chicago's Booth School of Business says it's more complicated: Fault lines along the tectonic plates of the global economy pushed big government and big finance to a financial earthquake. One lesson from the crisis: When nine of 10 experts say everything is fine, the press should devote more than 10% of its coverage to those who say it isn't fine. I should have paid more attention to Mr. Rajan, who famously ruined a 2005 Federal Reserve celebration of Alan Greenspan's career by suggesting that big banks might be steering the world economy off the cliff. ("I felt like an early Christian who had wandered into a convention of half-starved lions," he says.) Mr. Rajan, a Massachusetts Institute of Technology Ph.D., sees the crisis through an unusual lens. He spent his childhood in India, studied electrical engineering there and still advises its government. He later did a few years as chief economist of the International Monetary
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Many+Fault+Lines+in+Crisis - Professor Finds Many Fault...

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