books After the Music Stopped: The Financial Crisis, the Response, and the Work AheadAuthor Alan S Blinder –

New York TimesBestseller One of our wisest and most clear eyed economic thinkers offers a masterful narrative of the crisis and its lessonsMany fine books on the financial crisis were first drafts of historybooks written to fill the need for immediate understanding Alan S Blinder, esteemed Princeton professor, Wall Street Journalcolumnist, and former vice chairman of the Federal Reserve Board, held off, taking the time to understand the crisis and to think his way through to a truly comprehensive and coherent narrative of how the worst economic crisis in postwar American history happened, what the government did to fight it, and what we can do from heremired as we still are in its wreckageWith bracing clarity, Blinder shows us how the US financial system, which had grown far too complex for its own goodand too unregulated for the public goodexperienced a perfect storm beginning inThings started unraveling when the much chronicled housing bubble burst, but the ensuing implosion of what Blinder calls the bond bubble was larger anddevastating Some people think of the financial industry as a sideshow with little relevance to the real economywhere the jobs, factories, and shops are But finance islike the circulatory system of the economic body if the blood stops flowing, the body goes into cardiac arrest When Americas financial structure crumbled, the damage proved to be not only deep, but wide It took the crisis for the world to discover, to its horror, just how truly interconnectedand fragilethe global financial system is Some observers argue that large global forces were the major culprits of the crisis Blinder disagrees, arguing that the problem started in the US and was pushed abroad, as complex, opaque, and overrated investment products were exported to a hungry world, which was nearly poisoned by themThe second part of the story explains how American and international government intervention kept us from a total meltdown Many of the US governments actions, particularly the Feds, were previously unimaginable And to an amazingand certainly misunderstoodextent, they worked The worst did not happen Blinder offers clear eyed answers to the questions still before us, even if some of the choices ahead are as divisive as they are unavoidable After the Music Stoppedis an essential history that we cannot afford to forget, because one thing history teaches is that it will happen again

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