drivers of easy money ***

--the origins of the boom and this unfolding reversal predates last year's mistakes. --they trace to changes in the banking systems provoked by the collapse of the savings-and-loan industry in the 1980s, the reaction of governments to the Asian financial crisis of the late 1990s, and the Fed reserve's reponse to the 2000-01 bursting of the tech-stock bubble. --Like S&P crsis and because of S&P crisis, financial innovations and lax regulation lead to boom http://ftalphaville.ft.com/blog/2007/08/03/6307/the-subprime-lessons-of-americas-sl-crisis/ --global saing glut is another factor: Asian recession in 1998 lead to depressed currencies, resulting in huge reserve in central banks. They put much of the cash into U.S Treasurys. --together with overeas saving, low interest rate, cut by Greenspan after tech-burst in 2001, fueled home prices and leverage buyouts. http://online.wsj.com/article/SB118643226865289581.html