Financial Shock (Updated Edition), (Paperback): Global Panic and Government Bailouts--How We Got Here and What Must Be Done to Fix It

by Mark Zandi

In Financial Shock, Mr. Zandi provides a concise and lucid account of the economic, political, and regulatory forces behind this binge.

Genres: Nonfiction

293 pages, Paperback

Published April 15, 2009

Reviews

[Gordan Karlic · Rating 4 out of 5]

I am really on the fence for this book about grade 4 or 5.
On the one side, it gives a really good overview of the financial crisis, you should know something about the economy before reading this book, but even if you don't know much about it, you will still understand what happened during 2007-2008.
On the other side, there two problems that bugged me about this book.
The first problem doesn't bug me that much. The author is blaming the crisis on greed, ignorance, bad regulations, and sure all that played a part, but he almost never talks about illegal actions of the bankers, conflict of interest, or in general he is putting some much emphasis on the randomness of markets that he is almost completely ignoring personal responsibility (names of banks, persons etc.)
But the second problem is much bigger. Because he is working in one of the rating companies authors thinks he will be in conflict of interest talking about the role of rating companies in financial crisis, so he doesn't even touch that topic. No matter how much economy is about mathematics and calculations, there is one thing you can't put into the equation, and that is trust. And rating companies were in bed with Wall Street and lied about ratings because they were paid to say ratings are better they were. So leaving so huge piece of the puzzle is just wrong, and they misused trust.
An overall really good book that will explain a lot of things whey economy crashed in 2007-2008.

[Irfan Fahmi · Rating 4 out of 5]

A very detail explanation on how the subprime crisis occurs. The major factor that bring to the crisis i think is the policy by American government itself to urge people to own a house. To the extent, owning a house bring a notion that it is priceless dream by all Americans.

Beside, many technical factors such as the mortgage rate and inefficiency of house production after the house booming led to the crisis.

Overall, it is a must read book for those who want to know how does finance really works in a bigger picture

[Allison · Rating 3 out of 5]

Fairly repetitive, but a good overview.

[April Freeman · Rating 5 out of 5]

Everyone should read this...