Written for the motivated non-specialist, this work provides the most clear and thorough coverage available of the causes and consequences of the Great Financial Crisis and the role of the Federal Reserve in preventing it from escalating into a massive depression a la the 1930s.
The Great Recession that followed the popping of the dual credit and housing bubbles deprived more than 8 million Americans of their jobs and triggered a per capita loss of income of more $6,000 in 2008 and 2009 alone. This work provides a clear and comprehensive explanation of the myriad forces that combined to create the bubbles that were the source of the economic contraction. It retraces the chain reaction that took place as these bubbles deflated. The channels through which the crisis spilled over to produce the Great Recession are carefully laid out. The book is unique in thoroughly contrasting the Federal Reserve’s brilliant implementation of policies that saved us from disaster in the recent crisis with its inept behavior that strongly contributed to the Great Depression of the 1930s.