What is exactly causing the current worldwide depression?

[Prince Cobra]

Subprime market and the greediness of American banks. And their leaders too. (AIG - Golfing tournaments)
"When America sneezes, Europe catches cold."

'Nuff said.

I strongly disagree. Of course, this crisis might be different but somehow it was USA that was more vulnerable to the crisis of '29. Of course, a possible explanation is that the US economy of that time was developing with extremely fast pace. It is also true that consensus is needed inside European Union in order to fight the crisis and there is still much work to be done. And yet I continue to hold the opinion that USA is more vulnerable to crises than Europe. We'll see if this crisis will confirm this belief of mine or not.

I would like to hear opinions of the esteemed Orgahs, about the reasons behind the current depression, which is threatening the global economy? Is it caused by sloppy credit giving by banks and investment banks? Or is it just a normal phenomenom of hitting a economical low point, which is followed by high tide? Or maybe something else? For example all the economy papers were hinting for many months before the credit crisis that investors should move their funds from stocks, into gold for example.
Was this an event where we can wittness vice analyst´s predicting the future downfal of markets, or was this an intentional manouver from investors to create a downfal in stock values? Since it is natural phenomenom that once people who are playing with lend money are forced to sell because of lack of ability to pay, or lack of more credit, prizes go down and others who have access for large amounts of funds can buy many things for extraordinary cheap prizes.

In the end is it even possible for investors to speculate on such grand scale?Opinions and thoughts please, if you will.

Well, this crisis is certainly more than temporary slow down after boom. I also think no government should be blamed on such a event (even if it is headed by George Bush ). Certainly the Republicans contributed to it but not to the extend they are often blamed. This crisis was result of unwise investment of credits and the irresponsible and short-sighted policy of the banks. Nothing new under the sun: people are often too thoughtless when they are on their peak... In a way it is a crisis of the system,which encouraged that thinking. And since nowadays everything depends on credits, this financial crisis would become world recession. I am a bit pessimist about easy and happy end of the crisis...