A Nation In Distress

A Nation In Distress

Tuesday, March 6, 2012

Financial Fiasco: How America's Infatuation with Homeownership and Easy Money Created the Economic Crisis (Hardback)

From The CATO Institute:


Financial Fiasco: How America's Infatuation with Homeownership and Easy Money Created the Economic Crisis (Hardback)

$21.95
    

By Johan Norberg

An easily accessible work on the economic crisis, the book guides readers through a world of irresponsible behavior, showing how many of the “solutions” being implemented are repeating the mistakes that caused the crisis.

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ABOUT THE BOOK
"The story of this storm in the global markets is the story of how government intervention to solve previous crises laid the foundation for a new one," writes Johan Norberg in his important new book. Tracing the causes of our current financial crisis with liveliness and clarity, Financial Fiasco shows the mistakes made in Washington, on Wall Street, and in communities across America that led to the economic meltdown. While many analysts have placed the blame solely on Wall Street, Norberg exposes the crucial role government regulation played in creating the opportunities and incentives that led to the financial collapse.

In six concise chapters, Financial Fiasco tells the complex story of the crisis, showing how monetary policy, housing policy, and financial innovations combined to create financial catastrophe. The final two chapters describe the government’s mismanagement of the crisis and how we are now dangerously repeating many of the very same mistakes that caused it. An understanding of the roots of the financial crisis is crucial for every American who has felt its effects—and would like to prevent the same disaster from happening again. Financial Fiasco provides that understanding, with great insight, clarity, and wit.

Just as important, the book serves as a profound warning against pursuing the wrong solutions. "After government authorities had helped create the worst financial crisis in generations, the climate of ideas has now shifted dramatically in the direction of bigger and more active government,” Norberg writes. Financial Fiasco is the perfect antidote to those ideas, a cautionary tale on how to stop confusing the disease with the cure.
ABOUT THE AUTHOR
JOHAN NORBERG is a senior fellow at the Cato Institute. His previous book, In Defense of Global Capitalism, has been published in more than 20 countries. He wrote and hosted “Globalisation Is Good,” a documentary for Channel Four in Britain. He lives in Stockholm.
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Contents


WHAT OTHERS HAVE SAID
"Financial Fiasco is more subtle than its brazen title suggests. It describes the wide-ranging causes of a 'perfect financial storm' but with one underlying theme: the role of government in creating the conditions for the boom, and counterproductively intervening against the subsequent crash. After reading this book, only a naive reader could argue that extra regulation can fix a boom.”
—GILES WILKES, FINANCIAL TIMES

"Johan Norberg exposes the abiding hypocrisies of policy that generated this crisis far better than an American insider could. A masterwork in miniature."
—AMITY SHLAES, SENIOR FELLOW IN ECONOMIC HISTORY, COUNCIL ON FOREIGN RELATIONS,
AUTHOR, THE FORGOTTEN MAN: A NEW HISTORY OF THE GREAT DEPRESSION

"You don’t have to be an economist to gain a clear understanding of the diverse forces that produced the financial fiasco that Johan Norberg describes: lax monetary policy by the Federal Reserve System, overpromotion of homeownership by the government and government agencies, and transformation of the mortgage loan industry into an issuer of securities backed by a pool of mortgages of varying quality. The result is the collapse of the asset price boom in house prices, loss of wealth, and a dysfunctional financial credit market."
—ANNA J. SCHWARTZ, COAUTHOR, A MONETARY HISTORY OF THE UNITED STATES

"This highly readable book, by a historian, gives an unbiased explanation of the various factors leading to the financial meltdown, and says that if we’re looking for scapegoats, we need only to take a look in the mirror. Norberg has done a yeoman’s job in economic diagnostics. Whether the American people want to take the necessary treatment is another question."
—WALTER E. WILLIAMS, JOHN M. OLIN DISTINGUISHED PROFESSOR OF ECONOMICS, GEORGE MASON UNIVERSITY

"Financial Fiasco . . . is a penetrating and frightening analysis of the causes and consequences of the 2008 Financial Panic. Norberg lays out with precision and detail how a perfect storm of misguided government policies and private-sector exuberance combined to create the worst economic downturn since World War II. This is essential reading for everyone who cares about our economic future, but especially for those who are still not sure what caused the crisis. As Norberg makes clear, private forces jumped willingly on a runaway train, but it was government that built the train and drove it off a cliff."
—JEFFREY MIRON, SENIOR LECTURER IN ECONOMICS, HARVARD UNIVERSITY

"The merit of the book does not lie in apportioning blame or defending the thesis that government interventionism, not unbridled markets, was the principal cause of the tragic events whose consequences still haunt us. Norberg’s book does a good job of bringing the arguments together and providing us with a full canvas. What is especially compelling is the evidence that this bubble was in essence no different from previous ones and, more eerily, that various governments are busy incubating the next one."
—ALVARO VARGAS LLOSA, DESERET NEWS
$21.95

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