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The Storm/After the Storm #1

The Storm: The World Economic Crisis and What It Means

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In his number 1 hardback bestseller, Vince Cable, 'the stage of the credit crunch' ("Daily Telegraph") explains how we got in to this mess and what it means. In "The Storm", Vincent Cable explains the causes of the world economic crisis and how we should respond to the challenges it brings. He shows that although the downturn is global, the complacency of the British government towards the huge 'bubble' in property prices and high levels of personal debt, combined with increasingly exotic and opaque trading within the financial markets, has left Britain badly exposed. Yet we need to be vigilant in our response to the dangers confronting us. Times of crises inevitably bring forth false prophets who offer easy panaceas and identify scapegoats. However, Cable shows that an insular response to the current crisis would be a disaster and urges us to resist the siren voices that promote isolationism and nationalism as the answer to economic woes. He argues that policy makers must keep their faith in liberal markets if the remarkable advances in living standards, which are now being extended to the world's poorer countries, are to be maintained.

192 pages, Hardcover

First published April 1, 2009

7 people are currently reading
133 people want to read

About the author

Vince Cable

42 books18 followers
John Vincent "Vince" Cable is a British politician and Leader of the Liberal Democrats. He was the Secretary of State for Business, Innovation and Skills from 2010 to 2015 and the Member of Parliament for Twickenham from 1997 until losing his seat in the 2015 election. He regained his seat in the 2017 election and became leader of the Liberal Democrats soon after.

Cable studied economics at the University of Cambridge and the University of Glasgow, before becoming an economic advisor to the Government of Kenya between 1966 and 1968 and to the Commonwealth Secretary-General in the 1970s and 1980s. From 1968 to 1974 he lectured in economics at Glasgow University. Later, he served as Chief Economist for Shell from 1995 to 1997. In the 1970s Cable was active in the Labour Party, becoming a Labour Councillor in Glasgow. In 1982 he joined the Social Democratic Party – which later joined with the Liberal Party to form the Liberal Democrats – and he unsuccessfully stood for Parliament in the general elections of 1970, 1983, 1987 and 1992 before being elected as the MP for Twickenham in 1997.

Cable became the Liberal Democrats Treasury Spokesman in June 2003, and was elected Deputy Leader of the Liberal Democrats in March 2006, becoming Acting Leader for two months in 2007 following Sir Menzies Campbell's resignation until the election of Nick Clegg. He resigned from both of these position in May 2010 after becoming Business Secretary.

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5 stars
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53 (33%)
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Displaying 1 - 20 of 20 reviews
Profile Image for Vanya Prodanova.
831 reviews25 followers
February 8, 2020
Ето така очаквам да изглеждат и звучат икономическите книги - объркващи, хаотични и скучни. :/ Изумително е, че книжката е толкова малка, а реално ми се стори километрична.

Приключих я преди десетина минути и не мога да се сетя нищо от нея, толкова неразбираема ми дойде, а на езиково ниво - разбирах повечето неща, освен някои и други икономически термини, но като цяло не би следвало да е толкова трудно да разбереш как функционира икономиката. Икономиката и финансите могат и трябва да бъдат представяни разбираемо и заинтригуващо към хората. За съжаление, повечето политици и икономисти, не са никак добри разказвачи, а реално те са тези, които схващат логиката на тези неща. :Р

Вероятно книгата не е лоша, ако бях успяла да я разбера напълно и не трябваше на всеки пет минути да се пляскам през лицето да си напомням да слушам, а не да се разсейвам, но наистина беше пословично скучна, макар и опитите на автора да бъде... забавен. :)

Profile Image for Bonnie Huval.
Author 4 books
July 29, 2010
Cable gave me more background information about a number of events, although he presumes the reader is fully conversant with all his references and sources. In place of footnotes, he finishes the book with a lengthy description of what his sources were for each chapter. While his remarks about how he put together the chapters give a little insight into his thinking, footnotes would be helpful.

I am concerned by a major inconsistency. He says we got into the current economic mess partly because too much regulation provoked behaviours that eventually led to crisis. He cites several prior market crises arising from that same general cause, and indicates regulating markets too much always turns out that way. Then he strongly advocates adding more regulation to the financial system--after painstakingly explaining how the current level of regulation helped to set up the current downturn.

I can forgive a lot of missed details in a book written so quickly in the heat of a crisis. But Vince Cable is not just a writer. He is in a position to make and influence policy on a grand scale. How much regulation to apply to the financial system, and what kind, is a crucial question, not a minor detail. The breadth of his knowledge is considerable, but his disconnect with himself on this issue is discomforting in a policymaker.
Profile Image for Graham Tapper.
280 reviews4 followers
January 3, 2013
This book should be compulsory reading in all schools. Cable's analysis of how we got in the mess we're in is backed in its authority as coming from the only leading politician who predicted it, years before it happened.

He could have written it as an "I told you so, but you just wouldn't listen", but he doesn't. Instead he examines all of the contributory factors and comes to conclusions that are not entirely in line with media pundits. I would trust his analysis above theirs, any day.

Written in 2008 and very much as a first thought on the then current events, looking back from where we are now, it is still clear, especially where the current Tory-dominated government is concerned, that there are those who still think they know better and are not prepared to take the measures that are necessary.

It would be interesting to see if Cable re-visits these book in a few years time. I have a strong suspicion that he may do so under the pen-name of Cassandra!
Profile Image for Luis Rodrigues Rocha.
19 reviews1 follower
July 25, 2019
This book is undoubtedly a rightful guide on the global crisis of 2008. It is highly succinct and written in such a method that the complex explanation of micro and macroeconomic concepts are easy to comprehend rather than difficult to follow in a line of reasoning.

Starting formidably with a description of the Northern Rock abyss that portrayed the unparalleled leverage ratios that dragged all the banks to a gulf of rescues due to the mortgages defaults, and the demonstration of the unmeasured levels of greed from people within the financial industry, this book is the one who best describes the UK financial crisis of 2008.
The explanation of the credit contraction faced in 08/09 is so detailed and candid, that allow us to comprehend the importance of the central banks intervening with monetary policy and fiscal policy (interest rates, taxes) to foment economy and foster consumerism to balance the sheets. Additionally, I now understand the impact of Oil shocks had in the current crisis and how the market is intertwined, so much that any shake in the Oil market will reflect in one's economy. Likewise, I loved the great reflexion over the resurrection of Malthus (Thomas Robert Malthus- Malthusian trap as the growth of population would exhaust resources) it really made me realise how some theories are really shallow and how people can get influenced by it.
I also think one of the most relevant chapters is "The Awkward Newcomers", this chapter clarifies the less obvious to the eye, and how deeply the bubble goes. It explains how China and India are becoming more important key players in the market gamble and should be taken more seriously, their mercantilist genesis of trading with higher exportations and investing in developed countries bonds to feed the cycle is highly disruptive and is suffocating the economic sustainability.
Then the remaining part of the book talks to the reaction, reactionaries and the response evoking the Keynesianism and how the Neo-Keynesian model is used to analyse the effect of demand shocks on the economy. Also, explains the influence of inflation & deflation with the recipe of monetary or fiscal policy as response over these kinds of crisis and how everyone will continue to barely survive the boom and bust, and that’s why he presents us the Future road map where it is highly influenced by regulating the finance industry, markets and arranging competent bodies to oversee the derivatives market.

The less appreciated factor in this book is the political commentaries if these were absent I would give 5 stars and would spread amongst family and friends as a mini encyclopaedia of the crisis of 2008 in the United Kingdom.
Profile Image for Andrew Bishop.
208 reviews2 followers
September 16, 2023
Provides some interesting insights into the Global Financial Crisis from a British viewpoint. Describes what a tangled web the financial system was, and I would suggest still is. So many occurrences since the time the book was written it would be interesting to hear the author's take on BREXIT and Covid.
6 reviews2 followers
November 9, 2017
Great book with a lot of insights and gave an idea of what the future will look like.... Unfortunately, I left it on my flight back home and it's gone forever....
This entire review has been hidden because of spoilers.
Profile Image for Richard Brown.
23 reviews
June 26, 2020
Very interesting. His history on oil prices was particularly well researched.
Profile Image for Josh Taylor.
34 reviews17 followers
July 2, 2020
Wish I'd read years ago, learnt and understood more reading this than my undergraduate economics modules at university of Manchester.
Profile Image for Val Penny.
Author 20 books110 followers
April 13, 2015
John Vincent "Vince" Cable was born 9 May 1943 in York, England. He was the son of a working-class Tory, Len Cable, and his wife Edith. Len was a craftsman at the Rowntree chocolate factory while Edith packed chocolates for rival firm Terry's. He is a British Liberal Democrat politician who has been the Secretary of State for Business, Innovations and Skills in the Conservative Liberal Democrat Coalition Government from 2010 to 2015. He has also been the Member of Parliament for Twickenham since 1997. Twickenham is a town in south west London on the River Thames in the London Borough of Richmond upon Thames, located 10 miles (16 km) southwest of the centre of London.

Cable studied economics at the University of Cambridge and the University of Glasgow, before becoming an economic adviser to the Government of Kenya between 1966 and 1968. It was there he met his first wife, Olympia Rebelo with whom he had three children. He was was working and where Olympia had been raised by her Indian parents. He combined his time during his last days betwwen his responsibilities as an MP and as her carer. She died of cancer 2001. He re-married Rachel Smith in 2004.

Dr Vince Cable has held many posts prior to becoming an MP. After he worked in Kenya, he was economic advisor to the Commonwealth Secretary-General in the 1970s and 1980s and from 1968 to 1974 he lectured in economics at Glasgow University. Later, he served as Chief Economist for Shell from 1995 to 1997. In the 1970s Vince Cable was active in the Labour Party and became a Labour Councillor in Glasgow In 1982 he joined the Social Democratic Party. This later joined with the Liberal Party to form the Liberal Democrats. Cable's experience in the industrial world have led weight to his financial and business views in political circles.

I found The Storm by Vince Cable in the non-fiction shelves of my local library. One of the many merits of Cable's bestselling book about the crisis, is the author's preference for explanation over blame. He also avoids the temptation to polemicise must have been huge, especially for a politician. Cable a Liberal Democrat refrains from denouncing his rivals' mistakes, he allows himself only the occasional sardonic aside. That non-partisanship is admirable and rare. It helps explain why Cable is probably Britain's most trusted politician and why the media sometimes defer to him as a commentator, as if he is above the fray.

However, The Storm, does have a clear agenda. Cable surveys the wreckage of ultra-free market capitalism with a view to salvaging a more moderate, classical form of liberalism. He anticipates how the crisis will destabilise world trade and provoke nationalistic reaction and makes the case for open markets that are well-regulated but not state-managed. It is vital, he argues, that an alliance of liberals and social democrats seize the moment to reform capitalism. The alternative is a drift back towards the old, unstable laissez faire model and an inevitable illiberal backlash.

I found the breadth of Cable's analysis extraordinarily clear, especially given how briskly he narrates. Pressure to pack so much into a slim volume does perhaps mean that he relies a little too heavily on economic jargon but he is right to avoid angry populism. As a political performer his style exudes the wisdom of moderation. So does this book, The Storm. I am neither a politician, nor an economist. However, This book was eminently readable. I enjoyed it very much and learned a lot from it. I highly recommend this book.
Profile Image for Allan Leonard.
Author 6 books4 followers
August 5, 2012
Vince Cable is the chief economic spokesperson for the Liberal Democrats, and his lucid explanations of the credit crunch and overall current parlous global economic situation has seen him well sought after by mainstream news media outlets. For good reason -- his analysis has been proven spot on.

In his book, The Storm: The World Economic Crisis & What It Means, Cable reviews both distant and more recent economic history to put the current situation in context. This includes a chapter on the surge in commodity prices in 2008. Here, his professional experience as a chief economist for Shell provides credence to his arguments.

Cable does his best to present the intricacies of international finance and macroeconomics to the lay reader, but having some education in economics does no harm, e.g. appreciating the difference between a trade balance and balance of payments.

My favoured sections were towards the end, when Cable suggests some actions for the way forward:

* Central bank monetary policy to deal with asset prices as well as inflation (a la Irving Fisher; the Swedish experience)

* Remove mortgage tax relief (USA) (reduce over-borrowing) and business interest tax relief (UK) (reduce excessive leverage)

* Replace cash salary bonuses with stock with delayed redemption

* Agreed international accounting standards and reporting (greater transparency)

More challenging is Cable's suggestion for a new multilateralism that places Asia "at the heart" of the world economy.

Indeed, The Economist published an excellent article that described the role that China's gigantic trade surplus had in flooding the American financial markets with funds needing investing ("When a flow becomes a flood" 22/1/2009)

Cable calls for a New Bretton Woods, hosted in a place like Singapore, with key participants the USA, China, Japan, the eurozone, and India.

Part of Cable's motivation is to prevent economic nationalism, or "state capitalism", which encourages protectionism under numerous guises, including "economic security". Cable isn't predicting a repeat of what happened in the 1930s interwar years, but he repeatedly paints an ominous picture of what a failure to properly address the current issues could mean.

Cable has an enduring faith in liberal markets producing wealth and prosperity, which includes public services, and implores with policy makers to take the appropriate actions to ensure this remains the case.

My criticism would only be that I wished Cable had presented more detail on his own suggested actions, as well as on what he would deem as best practices around the world. Perhaps that's the scope of a future volume.
Profile Image for Jordan Eves.
12 reviews
July 3, 2019
This book gives immense insight into the events that unfurled leading to a global economic crisis. By reading this, one can better grasp how the crisis was on such a worldwide scale. Of particular interest to me was the explanations of what occurred economically in regards to commodities, oil and energy, Chinese investment in our housing and credit systems, and all of the details on banking and banking regulation, on investments, collateral, liquidity, and so on.
This book also gives you a great idea of what kind of economics you should vote for and will back up or alter your level of socialism, liberalism, or conservatism.
Vince's career has been one of great progress and aims to bring a sustenance to British politics and economics to fortify our utmost integrity as a nation. It's critical we have him to identify all of these factors within the economic events that have unfurled nationally and internationally.
Profile Image for William.
74 reviews7 followers
April 18, 2009
Firemen fighting a big blaze need to pour on lots of water.

When you consider the rate at which new developments occur in the ongoing global economic crisis, it's fair to say that this book will soon be out of date. If you're going to read it, do so earlier rather than later. Even so, it's a decent (albeit brief) summary of the events that have led us to where we are now.

The only real downside is that at times Cable talks about very complicated subjects without giving any explanation as to what they are or how they work. In this respect, parts of the book will be confusing to the average layman, but don't let that put you off. After all, it's a complicated subject matter, and no book is ever going to be able to explain things in a 'dummy' way without over-simplifying the issues at hand.
286 reviews1 follower
September 21, 2023
Written by former leader of the UK Liberal Democrat party and former Shell Executive. Worth a read to help understand the 2008 GFC and recommendations to avoid a second go around. A well written book but you will need to focus. Although recommended...I would also recommend Robert Preston's book "how Do We Fix This Mess" over this one.
Profile Image for Nigel Street.
232 reviews1 follower
Read
January 16, 2016
Excellent summary of the issues leading up to and including the recent financial meltdown. Explained in understandable terms and in an interesting and engaging style makes this an engaging read. If you happen to identify with the author's views as I do it makes for an even more enjoyable one.
45 reviews
December 17, 2019
More enjoyable, well written and balanced than I would have expected from a politician. A few years out of date, but still very relevant. Lessons for us all about leverage, risk and transparency of business models.
31 reviews
December 5, 2023
DNF

Complex language if you’re not already familiar with world of finance and the history. The English itself is also rather literary and hard to digest. Seems like it might be interesting subject matter but I didn’t adhere to the writing style.
Profile Image for Marian.
18 reviews
Want to read
April 13, 2009
See Simon Jenkins review in London Sunday Times Online. Vincent Cable is a Liberal Democrat politician.




Profile Image for Matthew.
67 reviews2 followers
February 25, 2010
God bless St Vince, the last grown-up in the Commons. A concise and lucid examination of the depth and consistency of the bucket of sh*t in which we find ourselves.
Profile Image for Effendy Yahaya.
125 reviews2 followers
July 5, 2014
Extensive and compress of my economics for business book in holistic view ! excellent.
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