Ain’t no Sunshine when the Boom is Gone: Questioning the Roots of Current Global Financial Crisis

In autumn 2008 the unrivalled stars of Wall Street and international financial markets have been struggling to understand why the boom was gone, after enjoying years of bright sunshine in financial markets. In this short note, we put forth a new line of political-economy reasoning in explaining the root causes of the global financial turmoil, which turned Wall Street into “a house which ain’t no home” as long as the boom is gone. In this regard, we argue that the recent financial crisis is rather a political failure, which comes at the price of recession.