As global financial crisis spreads to more regions the blame game started between Asian, European and American countries about the root cause of the problem.

It is clear that the actual problem started in the US housing sector, a bubble has been developing in the $8 trillion US housing sector for many years and finally collapsed at the end of 2007.

After the recession and stock market crash in 2001 investors turned to real estate as a safe heaven and this fueled the price rice in real estate sector to unrealistic levels. Banks and other financial institutions utilized this scenario by relaxing loan policies and came out with new risky derivative products looking only at the huge profit.

Investment banks like Lehman Brothers started buying existing loans from commercial banks and resell it like mutual funds. This reduced the liability of commercial banks so they relaxed loan norms and started giving loans to everybody. So it became easy for a person with no income and no job to get a bank loan easily.

When big insurance companies like AIG started giving assurance for these loans it became easy for banks and investors. Government and regulatory bodies who were responsible to regulate these unhealthy practices kept quiet and this really lead to transform it to a big financial crisis.

In 2002 itself economists like Dean Baker and Robert Shiller warned about a bubble in the US housing sector, but US regulators ignored all that.

But now US is finding new excuses for the crisis putting blame on Asian countries for the crisis.

Former U.S. Treasury Secretary Henry Paulson last week said "In the years leading up to the crisis, super-abundant savings from fast-growing emerging nations such as China and oil exporters ... put downward pressure on yields and risk spread everywhere."

Chinese central bank criticized his comments saying "This view is extremely ridiculous and irresponsible and it’s gangster logic. The ‘China-responsible theory’ is an attempt by major western economies to find an excuse for their own policy and regulatory failures,"

At the World Economic Forum in Davos, Switzerland last week, Chinese Premier Wen Jiabao and Russian President Vladimir Putin in essence blamed America for the global crisis.

“prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit; lack of self-discipline among financial institutions and rating agencies, with the ensuing distortion of risk information and asset pricing; and the failure of financial supervision and regulation to keep up with financial innovations, which allowed the risks of financial derivatives to build and spread.” Chinese Premier said.

Putin also criticized the US regulation for the crisis saying “I would only remind you that one year ago we heard from this rostrum words uttered by our American friends about the fundamental stability and sparkling prospects for the U.S. economy. Today, the pride of Wall Street investment banks basically does not exist any more. They have suffered losses surpassing their revenues in the last 25 years, cumulative.

Now the total US debt is at $10.64 trillion (5,21,45,800 crore rupees or 5.1 crore crore rupees) and it is increasing $3.31 billion per day. The estimated population of the United States is 30.5 crore so each citizen's share of this debt is $34,828 (17 lakh rupees). Out of this around 2 trillion are holding by Chinese government as US treasury bonds.

Now US blames Asian economies for its high interest rate policies for flowing huge amount of money to Asian economies when US is at 10.6 trillion dollar debt. Asian economies learnt lessons from the Asian financial crisis in 90s and encouraged safety investments.

When US citizens spent without any limit people in the Asia believed in savings and this helped Asian economies to survive in the global financial crisis.

The huge debt to China, Saudi Arabia, Japan and Britain tied American policy makers hand to take any strong decision to save the economy as surging debt is a main concern.

Now foreign governments like Germany and Britain asking for a U.N. economic council to police the global economy as they are frustrated with the US regulators. Britain and other European countries suffered most in the current crisis as they believed US regulators blindly.