It's been a while that I have not included my comments in my blog due to certain inconvenience at work. And it is time to resume doing it.
Comments on Kemal Derviş and Homi Kharas "New challenges for the global economy, new uncertainties for the G20", 17/06/2012, http://www.eastasiaforum.org/2012/06/17/new-challenges-for-the-global-economy-new-uncertainties-for-the-g20/
The GFC and possibly a potential second GFC seems to indicate more fundamental causes at play, that is, the tendency of markets particularly assets markets fails to work properly and to reflect correct values in the face of the surge of developing economies and its effects on world financial especially money markets.
The rapid growth in average productivity in fast growing developing economies generates excess savings/credits. This causes some sorts of bubbles in the asset markets by having more fund and credits to push up stock market and housing market.
People with apparently increased values in their assets may consume more than their life time real income level.
Bubbles mis-allocate national resources to bubbling sectors cause them to boom to meet the demand.
So, it seems that the GFC is caused by the fundamental failures of markets working along when governments fail to realise national and international regulation and cooperation are needed to correct those market failures.
This may be a lesson in economics when something is new and significant appears that the market is unable to cope.