Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong

Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong
Author :
Publisher : Cambridge Scholars Publishing
Total Pages : 197
Release :
ISBN-10 : 9781527522961
ISBN-13 : 1527522962
Rating : 4/5 (61 Downloads)

Book Synopsis Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong by : Paul Mueller

Download or read book Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong written by Paul Mueller and published by Cambridge Scholars Publishing. This book was released on 2018-12-06 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: Much of what has been heard, read, or taught about the 2008 financial crisis is incorrect. It was not caused by free market capitalism run amok. The crisis was not created by deregulatory zeal. It wasn’t primarily due to greed on Wall Street. The crisis was not simply created by people’s “irrational exuberance” or “animal spirits.” Perhaps most importantly, it did not require bailouts and thousands of pages of new regulations to fix. Instead, it came about because of significant market distortions created by government subsidies, misregulation, and perverse incentives. The conventional wisdom blames unbridled markets for mortgage fraud, imprudent risks, and extreme leverage in financial institutions. Policy makers told us that the failure of Lehman Brothers, and the near failure of American International Group and many large banks, would have resulted in catastrophic decline and perhaps another Great Depression. After the crisis, thousands of pages of new regulations were written to limit the types of risk banks can take and the kinds of investments they can make so that a financial crisis of this magnitude can’t happen again. But what if this conventional wisdom was wrong? If the problem wasn’t unregulated, unrestrained markets leading to fraud and excessive risk-taking, if instead it was perverted incentives and distorted market signals due to numerous regulations and mandates in the first place, then the thousands of new pages of regulations haven’t solved the fundamental problem. In fact, they have made it worse. This book shows that it is time to reassess the conventional wisdom. Perhaps there is still time to reverse the faulty solutions based upon it before another financial crisis breaks out.


Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong Related Books

Why the Conventional Wisdom about the 2008 Financial Crisis is Still Wrong
Language: en
Pages: 197
Authors: Paul Mueller
Categories: Business & Economics
Type: BOOK - Published: 2018-12-06 - Publisher: Cambridge Scholars Publishing

DOWNLOAD EBOOK

Much of what has been heard, read, or taught about the 2008 financial crisis is incorrect. It was not caused by free market capitalism run amok. The crisis was
The Fracking Debate
Language: en
Pages: 255
Authors: Daniel Raimi
Categories: Business & Economics
Type: BOOK - Published: 2017-12-26 - Publisher: Columbia University Press

DOWNLOAD EBOOK

Over roughly the past decade, oil and gas production in the United States has surged dramatically—thanks largely to technological advances such as high-volume
Unintended Consequences
Language: en
Pages: 321
Authors: Edward Conard
Categories: Business & Economics
Type: BOOK - Published: 2013-04-30 - Publisher: Penguin

DOWNLOAD EBOOK

Was our country’s economic success before the Crash of ‘08 built on false pretenses? Did we simply borrow and spend too much, or was something else really g
Misunderstanding Financial Crises
Language: en
Pages: 349
Authors: Gary B. Gorton
Categories: Business & Economics
Type: BOOK - Published: 2012-11-02 - Publisher: Oxford University Press

DOWNLOAD EBOOK

Before 2007, economists thought that financial crises would never happen again in the United States, that such upheavals were a thing of the past. Gary B. Gorto
Cracking the China Conundrum
Language: en
Pages: 289
Authors: Yukon Huang
Categories: Business & Economics
Type: BOOK - Published: 2017-06-22 - Publisher: Oxford University Press

DOWNLOAD EBOOK

China's rise is altering global power relations, reshaping economic debates, and commanding tremendous public attention. Despite extensive media and academic sc