Picture of author.

Mark Zandi

Teoksen Financial Shock tekijä

5 teosta 91 jäsentä 1 Review

Tietoja tekijästä

Sisältää nimet: mark Zandi, Mark M. Zandi

Image credit: Pete Souza

Tekijän teokset

Merkitty avainsanalla

Yleistieto

Sukupuoli
male
Kansalaisuus
USA

Jäseniä

Kirja-arvosteluja

As of the writing of this review the book is already out of date and a new edition has been published. I have not seen the revised edition but if the author leaves the credit rating agencies very important role in the run up to the crisis out the book will once again be incomplete. Having once worked on Wall Street I found the book easy to read but would not call it the definitive view of the cause of the finical crisis. Too much is left out in this small primer even discounting its early publication date.

Leaving the omission of assigning the responsibility due too the credit rating agencies, the author works for one, Dr. Zandi tries to write this in an objective tone tracing the beginning of this particular crisis to 1995 with the Clinton's Administration mandate that regulators require lenders to loan to people who could not afford the loans, This is what started this problem! Greed took over from there. And the author shares his opinions on the mistakes in judgment made by Greenspan's Federal Reserve.

Dr. Zandi leaves off on any narrative of the credit rating agencies because he works for one and implies he can not be objective in this area. Which means this book after the initial political decisions which forced lenders to start to make unqualified loans was made will not tell you how it was these very credit agencies that perpetuated and allowed the problem to grow as global large as it did. It is these very credit agencies who have contact with all the financial players and give the ratings to investment vehicles that is a major factor in investors decisions on whether or not to invest. Basically giving the sub-prime product bundles their higher than warranted ratings.

With the large and ever booming false market their needed to be a way for originating lenders to lay off what they knew were risky loans. And some investment bankers like Bear Stearns were glad to step up and make complex vehicles backed by highly overvalued asset backed securities and disseminate them throughout the world. After all it is what Wall Street is good at and the credit agencies where giving many of these products Aaa rating. With a Aaa rating and high returns who could not look at investing in this often complicated products. But once again the book lacks the understanding of those in the investment banking business and can only briefly touch on the subject and its role in this financial crisis.

Naively the author thinks that this kind of crisis can be avoided again by more regulation of the mortgage industry, to bring transparency and accountability to transactions, to invest in financial education in primary schools, and a discussion of the regulation requiring institutions to mark-to-market should be modified. On the last point he has solid ground even though he does not go into any substantial detail. By the time you finish reading this book you would have forgot what we started with and that is it was the regulators pushed by politicians that required lenders to loan to people who could not afford the loans that is at the heart of the problem.
… (lisätietoja)
 
Merkitty asiattomaksi
hermit | Jun 10, 2010 |

Tilastot

Teokset
5
Jäseniä
91
Suosituimmuussija
#204,136
Arvio (tähdet)
½ 3.5
Kirja-arvosteluja
1
ISBN:t
15

Taulukot ja kaaviot