Why the conventional wisdom about the 2008 financial crisis is still wrong : ten years later / by Paul D. Mueller.

Format:

Book

Author/Creator:

Mueller, Paul D., author.

Language:

English

Subjects (All):

Global Financial Crisis, 2008-2009.

Financial crises--Prevention.

Financial crises.

Physical Description:

1 online resource (197 pages)

Edition:

1st ed.

Place of Publication:

Newcastle-upon-Tyne : Cambridge Scholars Publishing, 2019.

Summary:

Much of what has been heard, read, or taught about the 2008 financial crisis is incorrect. It was not caused by free market capitalism run amok. The crisis was not created by deregulatory zeal. It wasn't primarily due to greed on Wall Street. The crisis was not simply created by people's "irrational exuberance" or "animal spirits." Perhaps most importantly, it did not require bailouts and thousands of pages of new regulations to fix. Instead, it came about because of significant market distortions created by government subsidies, misregulation, and perverse incentives.The conventional wisdom blames unbridled markets for mortgage fraud, imprudent risks, and extreme leverage in financial institutions. Policy makers told us that the failure of Lehman Brothers, and the near failure of American International Group and many large banks, would have resulted in catastrophic decline and perhaps another Great Depression. After the crisis, thousands of pages of new regulations were written to limit the types of risk banks can take and the kinds of investments they can make so that a financial crisis of this magnitude can't happen again. But what if this conventional wisdom was wrong?If the problem wasn't unregulated, unrestrained markets leading to fraud and excessive risk-taking, if instead it was perverted incentives and distorted market signals due to numerous regulations and mandates in the first place, then the thousands of new pages of regulations haven't solved the fundamental problem. In fact, they have made it worse. This book shows that it is time to reassess the conventional wisdom. Perhaps there is still time to reverse the faulty solutions based upon it before another financial crisis breaks out.

Contents:

Intro

Table of Contents

Preface

Introduction

Chapter One

Part I

Chapter Two

Chapter Three

Chapter Four

Chapter Five

Part II

Chapter Six

Chapter Seven

Chapter Eight

Part III

Chapter Nine

Chapter Ten

Conclusion

Glossary / Appendix

References

Index.

Notes:

Includes bibliographical references and index.

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

1-5275-2296-2

OCLC:

1082192670