Blame for the crisis, foreign central banks and the state fund?

According to Time, last week in the U.S. began the committee meeting to clarify the causes of the financial crisis. Economist from the Massachusetts Institute of Technology Ricardo Caballero believes that the authority pays insufficient attention to the role of foreign investment.

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Caballero and share his point of view colleagues are not inclined to fully justify any American bankers or supervisors. They do not argue that the U.S. financial system has given crash, but stressed that the breeding ground for him began to foreign investment, in particular - from China and Saudi Arabia.

“Foreign investors, especially those who are charged with placing foreign government assets, prefer a relatively safe investment, because of what is usually a stable U.S. economy into a shaped market place,” - paraphrasing the words Time Caballero. A Detail, he believes the fact that foreign money went not in stock, and bonds.

China buying more and more long-term U.S. Treasury bonds, because of which the income from them decreased, and the bankers on Wall Street have released to the market a new class of derivative financial instruments with fixed income securities, among them a prominent place occupied collateralized debt obligations. Most of the income from these investments has been thrown on the mortgage market. Banks were able to issue more loans, increased demand for property, but many of the loan was not under force. What happened next, everyone knows.

To prevent similar crises in the future need not only to reform the American financial system, but also to regulate foreign investment, the article says. In particular, Caballero proposes to oblige the foreign players who want to invest in the United States, to invest in several different financial instruments, not focusing on any one. “The only way to make the American system really is resistant to systemic shocks - is to adjust the aspect of the proposal,” - he concludes.