Where did all the money go?

I read an article called “Where did all the money go?”, and the article was about money. They explained how trading, investment and production works. The text also contained something about that the investment has decreased lately. They wrote that this led to unemployment and poverty. This might be a problem to the government because of the taxes. This problem is bigger than before.

The blame was upon previous Prime Minister in the U.K., Margaret Thatcher, and previous in the U.S., Ronald Reagan because of their faith in the free MARKET. Therefore, they removed a lot of expensive programs and regulation so nothing would be in their way for private initiative. A result to this was that many people without success became poor and the successful people became rich.

A completely new set of financial institutions entered the arena in the beginning of the 21st century. They do not make money by loaning out money. They make their profit by purchasing and marketing stocks. They use leveraging, which usually involves buying more of a benefit by using lent FUNDS. In the US, many banks across the country invested in the money MARKET and financial investment houses. This was a success.

Then the value of the houses began to fall. This was in 2007, when the profits people invested in suddenly was not so successful anymore. This led to that many had to loan money to pay back what they lost, but the thing is, no one wanted to lend them money because of the risk of not getting the money back. This was the start of the global recession. 

Sources:
http://access-socialstudies.cappelendamm.no/binfil/download.php?did=68773 (14.01.15)
Access - International English, page 169