House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again
| Author | : | |
| Rating | : | 4.12 (897 Votes) |
| Asin | : | 022627165X |
| Format Type | : | paperback |
| Number of Pages | : | 232 Pages |
| Publish Date | : | 2017-03-13 |
| Language | : | English |
DESCRIPTION:
Less spending means less demand for goods, followed by declines in production and huge job losses. Is it a coincidence that the United States witnessed a dramatic rise in household debt in the years before the recessionthat the total amount of debt for American households doubled between 2000 and 2007 to $14 trillion? Definitely not. More aggressive debt forgiveness after the crash helps, but as they illustrate, we can be rid of painful bubble-and-bust episodes only if the financial system moves away from its reliance on inflexible debt contracts. Though the banking crisis captured the public’s attention, Mian and Sufi argue strongly with actual data that current policy is too heavily biased toward protecting banks and cre
“The most important economics book of 2014; it could be the most important book to come out of the 2008 financial crisis and subsequent Great Recession. All future work on financial crises will have to reckon with the household balance sheet effects they stress. Its arguments deserve careful attention, and its publication provides an opportunity to reconsider policy choices made in 2009 and 2010 regarding mortgage debt. House of Debt is important because it persuasively demonstrates that the conventional meta-narrative of the crisis and its aftermath, which emphasizes the breakdown of financial intermediation, is inadequate. And af
"The solution is pure fantasy." according to Thomas A. Battan. I found the early chapters of the book to be well written and insightful. Essentially, the authors documented the rapid expansion of private debt to unsustainable levels, as the public chased home appreciation, caused by easy credit. The authors went on to avert that the collapse in housing prices had a greater adverse effect on the wealth and spending habits of the poorer cohorts of our society. They asserted further that the efforts of the government and the FED to mitigate the effects of the Great Recession where ineffective since they did not address the major cause, that being, the over leveraged private sector. They assigned mos. Useful for me but kind of mediocre D. P. S. Chubert This book was a useful read for me because it laid out the relationship between excessive mortgage debt, the collapse in demand and the depth of the great recession. They also make some interesting assertions about the impact of collapsing house prices on wealth inequality; the minor role played in the recession of a systemic threat to the banking system (as opposed to a liquidity crsis); and therefore the umipactful wealth transfer from taxpayers to bankers, and bank shareholders and lenders. In general, such assertions are interesting but sloppy. As happens so often in these popularizing books, the writers spin a coherent logic but . Ayman Farahat said Evidence based analysis of the causes of great recession. The book main message is simple : global investors' insatiable demand for super save funds far outpaced the supply of these funds. In response, the financial industry used ``tranching'' as a way to create an endless supply of these funds. Bankers were lending to anyone they can without regard to their capacity to pay back. The great recession started when lenders started defaulting on loans they could ill afford to start with.Mian and Sufi show that the reduction in housing equity caused a sever reduction in consumer spending which in turn lead to the worst economic crisis since the great depression.The authors explain their argument