Description
WHAT HAVE WE LEARNED FROM THE FINANCIAL CRISIS? NOTHING. The informative bestseller that shows us where our economy went wrong-and what we can do about it-with a timely new introduction. One of the most important books to emerge from the 2008 economic crisis, this powerful wake-up call from financial expert John Allison has become a classic in the field. Now, in light of emerging global trends and shakeups in the stock market, the book’s message is more timely than ever: The government should stop trying to fix our economy. The free market is our best and only hope. In this eye-opening book, Allison reveals: .How the Federal Reserve has even more power than before the Great Recession-and why this is a problem. .How Wall Street has been wrongly blamed for our slow economic recovery-and why it’s Washington’s fault. .How government regulations like Dodd Frank have burdened banks-and stifled growth. .How socialized medicine and entitlements drive up costs-and how government policies exacerbate unemployment and income inequality. .Why free market capitalism offers a proven cure for our economy-and how to make it work for all Americans. Introduction to the Paperback Edition Introduction 1: Fundamental Themes 2: What Happened? 3: Government Monetary Policy: The Fed as the Primary Cause 4: FDIC Insurance: The Background Cause 5: Government Housing Policy: The Proximate Cause 6: The Essential Role of Banks in a Complex Economy: The Liquidity Challenge 7: The Residential Real-Estate-Market Bubble and Financial-Market Stress 8: Failure of the Rating Agencies: The Subprime Mortgage Market and Its Impact on Capital Markets 9: Pick-a-Payment Mortgages: A Toxic Product of FDIC Insurance Coverage 10: How Freddie and Fannie Grew to Dominate the Home Mortgage Lending Business 11: Fair-Value Accounting and Wealth Destruction 12: Derivatives and Shadow Banking: A Misunderstanding 13: The Myth that “Deregulation” Caused the Financial Crisis 14: How the SEC Made Matters Worse 15: Market Corrections Are Necessary, but Panics Are Destructive and Avoidable 16: TARP (Troubled Asset Relief Program) 17: What We Could Have–and Should Have–Done 18: The Cure for the Banking Industry: Systematically Move Toward Pure Capitalism 19: Some Political Cures: Government Policy 20: Our Short-Term Path and How to End Unemployment 21: The Deepest Cause Is Philosophical 22: The Cure Is Also Philosophical 23: How the United States Could Go Broke 24: The Need for Principled Action 25: Conclusion Notes Index Acknowledgments
