Description
To understand financial crises-and how they can be averted-one must first understand how banks work. Banks play substantial roles in both financial markets and the overall economy. The Fallouts begins with this premise, familiarizing readers with the basic structure of financial statements and discussing the four main statement types: balance sheet, income statement, statement of changes in shareholders’ equity, and statement of cash flows. Author Obioma Anthony Ebisike, CPA, PhD, then turns to history for illumination, looking at the Great Depression of the 1930s, the Mexican peso crisis of 1994, the Asian financial crisis of 1997-1998, and the Russian financial crisis of 1998. Next, Ebisike investigates US banks and their role in the financial crisis that began in 2007 with a close examination of the real estate market and the dynamics of mortgage delinquencies and home prices. For those seeking to understand this crisis better, Ebisike models the concept of excess debt to address the question of whether outstanding student loans will be the trigger of the next financial crisis. This comprehensive, easy-to-use book is an invaluable resource for anyone who wants to get a handle on the intricate financial mechanisms underlying today’s interconnected world.
