Ideally a country’s economy should have the household sector as net savers and the corporate sector as net borrowers, with the government budget nearly balanced and net exports near zero. “Foreign exchange”, Inflation, interest, and the supply of money, May 2015.
A k-wave downturn, driven by demographic change, may have been a factor in the global financial crisis. Other factors were Chinese exports, American mortgage law, and financial deregulation. “Back in the downwave”, The crash of 2008, January 2012.
After the 2007-8 crisis, banks took big losses on securities based on US mortgages. The widespread existence of ‘non-recourse’ loans in the US may have been an important factor. Lenders may recover debt from defaulting borrowers’ homes, but not from their other income or assets. The crash of 2008, July 2009.
To reduce economic instability, land tax, better management of protectionism, and better understanding of demography are my suggestions. The search for a stable economy, 2011 and 2015.