Excess demand for high yields is the main culprit of the financial crisis. This very interesting perspective is proposed by Ph. Lysandrou here. While lots of attention was devoted to the supply side of the problem, less attention was directed at the factors pushing Western financial industries to come up with new financial products and high yield securities. Lysandrou's starting point is that governments and corporations are not viewed anymore as organisations who require external funding to carry on a certain function. Instead these organisations are now viewed by investors as containers of wealth. This new nature of corporation and governments depends on their capacity to issue securities.
who in 2006 numbered 9.5 million (a figure that represents just over 0.01% of the world's population of 6.8 billion) and who had combined wealth of $37 trillion, more than half of which, $19 trillion was in securities ( a figure that represents just under 10% if the total financial claims on the world's governments and large corporations.