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No, it is wrong there are many other factors involve in the downturn and meltdown of global economy.
One is explained above that few people don't know the funds managment and spent more than what they earn using bank personal loans, credit cards and mortgage loans. Over exposures and over commitments created for banks high number of deliquency debts.
However the basic reason for economic downtrun is due to those People with excess money (Capitalist) wanted to invest funds to get more profits from their investments. Investment bankers created some new products called leverage, sub prime lending and derivatives. Which even regulators find difficult to understand and finally the bubble blast. The major cause is due to human greed, pressure on banks and the regulators, who approved such products in the markets without understanding the fatal consequences. I hope a good lesson is learned in hard ways.
