Abstract
After steady growth for a decade and a half, the US economy is now in the grip of a serious recession. While the source of the current economic crisis lies in the housing and housing finance sectors, the so-called subprime crisis should be seen as a symptom of deeper structural and politico-economic problems of today's globalized capitalism, rather than the primary cause of the broader crisis. Considering growing financial complexity and regulatory requirements, and issues of equity and fairness, Ashok Bardhan expects a greater role for government institutions in the future.