‘The root cause of the crisis is not to be found in hedge funds and bankers who simply behaved with the greed to which they are accustomed (and for which economists used to praise them). The real cause of the crisis lies in huge inequalities in income distribution that generated much larger investable funds than could be profitably employed….. in a democratic system, an excessively unequal model of development cannot exist with political stability.’

—The World Bank’s lead research economist Branko Milanovic on how global inequality caused the global crisis (h/t Duncan Green).