Since my recent review of Michael Bigger’s How Traders Achieve Creative Flow received such a warm reception, I thought I’d chime in from time to time on other financial market related material I’ve been reading in my spare time.
I just finished my copy of Barry Ritholtz’ Bailout Nation and I’m happy to report I was thoroughly entertained from start to finish. Ritholtz did a stellar job explaining events leading up to the recent financial crisis in a manner even a simpleton like myself can understand.
Some of the commentary I found particularly enlightening includes:
Prior attempts at creating a central banking system in the United States that preceded our modern day Federal Reserve.
A “10 Step Bailout Pattern” chronicling the typical progression of a bailout from start to finish.
Shifts in the Federal Reserve’s policies during the Greenspan era including an increased focus on asset prices.
The incredible impact of mortgage equity withdrawals (MEW) on GDP growth during the housing boom. “MEW was responsible for more than 75% of GDP growth from 2003 to 2006.” Yes indeed, houses were treated as charitable little piggy banks by John Q. Public.
The fallout from too much deregulation and the financial pain that can ensue when free markets are left to self-regulate unchecked.
Despite its length, discussion on each subject was concise and to the point. In other words, each time I would approach the end of my attention span, the book took an enlightening turn into some other interesting facet of the bailout saga. All told, the book provided a treasure chest of insightful commentary.
And hey, I also picked up some new vocabulary along the way: intermezzo, zeitgeist, festooned, feckless, imprimatur, caromed, and cavalcade.
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