With so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why.
Lessons from the Financial Crisis brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps.Each section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions Examines the market collapse in detail and explores safeguards to stop future crises Encompasses the most up-to-date analysis from today's leading financial minds
We currently face a serious economic crisis, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through the current situation and learn from our mistakes.
The financial crisis created tens of trillions of debt, leaving investors to pay a huge price for these policy failures:The highest asset inflation we've seen in our lifetimes, although the government claims there isn't enough inflation More than $2 trillion of stock buybacks funded with low cost debt that are artificially inflating stock prices The Federal Reserve and other global central banks becoming the largest buyers of government debt in order to suppress interest rates An M&A boom resulting from companies needing to find growth outside of their core businesses
While the financial media misses the story, Lewitt pulls no punches explaining how all of these trends are leading to the brink of another crisis.
Lewitt lays out a survival plan for the average investor to protect their assets when the debt bubble bursts. The first edition of this book expressed hope that policymakers would not let the financial crisis go to waste. This book urges investors to learn from the crushed hope and take action before the next crisis.
In assigning blame for the recent economic crisis, many have pointed to the proliferation of new, complex financial products—mortgage securitization in particular—as being at the heart of the meltdown. The prominent economists from academia, policy institutions, and financial practice who contribute to this book, however, take a more nuanced view of financial innovation. They argue that it was not too much innovation but too little innovation—and the lack of balance between debt-related products and asset-related products—that lies behind the crisis. Prevention of future financial crises, then, will be aided by a regulatory and legal framework that fosters the informed use of financial innovation and its positive effects on the economy rather than quashing innovation entirely.
The book, which includes two contributions from 2013 Nobe Laureate Robert Shiller as well as a discussion of Shiller's “MacroMarkets” tool, considers the key ingredients of financial innovation from both academia and industry; and how future innovation-lined crises might be avoided.
Josef Ackermann, Nicholas C. Barberis, John Y. Campbell, Karl E. Case, Robin Greenwood, Michael Haliassos, Otmar Issing, Alexander Popov, Robert J. Shiller, Andrei Shleifer, Frank R. Smets, Susan J. Smith, Maria Vassalou, Luis M. Viceira
Reinventing Financial Regulation offers an analysis of the fundamental flaws that plague the current system of financial regulation, one built around ideas of "risk-sensitivity" and "capital adequacy." Author Avinash Persaud argues that while some sensible reforms have been introduced, a fresh approach—centered on risk capacity—is required. When the entire regime is compromised, simply slapping bandages on each new wound will do nothing to cure the underlying disease.
Reinventing Financial Regulation goes beyond an urgent call to fix our profoundly troubled and damaged financial markets. It is a blueprint for an effective financial regulation system that could very well save the future of finance.
What would a well-regulated financial system look like? Until now, policymakers, financial experts, and leading academics have been content to avoid facing this question head–on. We have been offered piecemeal reforms that ultimately leave the global financial system exposed to different versions of the same risks that so recently brought it to its knees. The world economy literally cannot afford to dodge this question any longer.
Persaud's goal to bring clarity and a powerful simplicity to the financial regulation process results in a systematic and apolitical framework for fixing the world's fractured financial industry and transforming its regulation—not just for today's financial climate, but once and for all.