On 2010-02-15 Jason D. Kjellson, Monument, CO USA wrote: Recognizing Robert Shiller´s name from the Case/Shiller indices etc.... I went to this book for research purposes. His discussion and analysis of the historical is spot on. He really gets into trouble when he starts talk solution and it boils down to this. FDR squared. He wants a second new deal!
For my part, I don´t think the solution is a return of the HOLC and more government dollars thrown at more unqualified borrowers. Rather, we need less government dollars and tighter risk controls that only private investment can bring. Our problem was securitization and complete ignorance of the underlying risk of derivative pools coupled with an incredibly ignorant government. Shiller actually places no blame on government for all of this which is a joke. Congress was warned by the Bush administration and the response was that Bush was trying to find problems where none existed.
You are paying for 2 chapters here. The rest will have your blood boiling, unless you are a Socialist.. And summed up by saying New Deal 2?. Currently The Subprime Solution: How Today´s Global Financial Crisis Happened, and What to Do about It has an overall rating of 6 over 10.
The Subprime Solution: How Today´s Global Financial Crisis Happened, and What to Do about It can also be found in the following searches:
Princeton University Press claimed The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the U.S. economy and economies around the world. In this trenchant book, best-selling economist Robert Shiller reveals the origins of this crisis and puts forward bold measures to solve it. He calls for an aggressive response--a restructuring of the institutional foundations of the financial system that will not only allow people once again to buy and sell homes with confidence, but will create the conditions for greater prosperity in America and throughout the deeply interconnected world economy. Shiller blames the subprime crisis on the irrational exuberance that drove the economy´s two most recent bubbles--in stocks in the 1990s and in housing between 2000 and 2007. He shows how these bubbles led to the dangerous overextension of credit now resulting in foreclosures, bankruptcies, and write-offs, as well as a global credit crunch. To restore confidence in the markets, Shiller argues, bailouts are needed in the short run. But he insists that these bailouts must be targeted at low-income victims of subprime deals. In the longer term, the subprime solution will require leaders to revamp the financial framework by deploying an ambitious package of initiatives to inhibit the formation of bubbles and limit risks, including better financial information; simplified legal contracts and regulations; expanded markets for managing risks; home equity insurance policies; income-linked home loans; and new measures to protect consumers against hidden inflationary effects. This powerful book is essential reading for anyone who wants to understand how we got into the subprime mess--and how we can get out.
Item that are similar to The Subprime Solution: How Today´s Global Financial Crisis Happened, and What to Do about It can be found at:
Buy The Subprime Solution: How Today´s Global Financial Crisis Happened, and What to Do about It |