Read the cases U.S. Subrpime Mortgage Crisis: Policy Reactions (A) and (B). 

Detailed answers per questions, double space, no less than 8 pages 

What are the causes behind the U.S. subprime mortgage crisis? 

Is one cause more responsible than the other?  

Why or why not?

How is the US current account deficit related to the subprime meltdown? 

Why is the US current account running such a big deficit and is it sustainable?

What, if anything, should the US do to solve the subprime crisis? 

Will the current plans work?

Is global adjustment to the crisis and current imbalances likely to occur, and if so, how? 

What could be done to encourage a smooth adjustment to prevent another global financial crisis?

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