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4.4 ★★★★★
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Product Reviews
★★★★★ 5
Deep Into the Financial Nuts and Bolts
Format: Paperback
This a very, very informative book about the financial crash of 2008 and its lengthy recovery. The British author is a fine writer and definitely appears to master the subject. His background is as an economic historian and his approach to the financial collapse is thru the lens of political economy.
For a European, he is very charitable towards the failures of the US markets and the responses of the US govt in the crisis. In fact, he is much more critical of the Germans and the British and the EU govts in their involvement in the crisis and their failure to more effectively guide the Eurozone out of the financial crisis.
The book is somewhat dense and daunting and is 616 pages of text. Definitly not for the faint of heart or those who are not somewhat financially and economically literate. It does not lend itself to speed reading. A glossary and list of abbreviations would have been very helpful--as other commenters have suggested. Abbreviated acronyms of organizations, treaties, agreements,govt agencies, etc. come flying fast and furious. Still, with due and diligent effort on the part of the reader, you can see how very well the author knits his technocratic financial narrative together.
The negative reviews often seem poorly informed. It's a difficult book to get thru. Some readers appear to dislike the author because he is a Keynesian liberal. I understand that, but they should note that he tends to be very positive about US govt financial leadership leading the world out of the crisis. Some don't like the fact that he thinks Trump is a grifter. Unfortunately, Trump is, irrefutably, a grifter and a con man.
The only areas where I found myself disagreeing with the author were on the issues of immigration and protectionism. The Eurozone and the US cannot support unrestricted immigration. There are too many millions in the world of 8 billion people who would kick down the gateways of either entitity to gain entry. Unrestricted immigration is an existential threat to all the Western countries involved. Sober assessment of reality is something other than "racist". "Realistic" is a far more accurate term.
The author is a classic liberal and against national "protectionism". However, this is 2023. The book was written in 2017. Much water has passed under the bridge since then. Countries are political entities with borders. Too often--as the writer points out--economic and financial advisors forget the "political" part of "political economy". Trump's legions are there to remind them. At least they are good for something. Protecting your economy from essential foreign supply chain failures and from hostile foreign competitors is just good governance. And insuring that others share in general prosperity besides coastal elites is another part of good governance. "Flyover Country" is every bit as important as the two coasts. Probably more so. Never forget the "political" part of "political economy".
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Reviewed in the United States on July 29, 2023
★★★★★ 5
A Complete Autopsy of the 2008 Financial Crash and the Government Response
Format: Hardcover
First, let me say that I can't believe one person wrote this entire book. Tooze handles everything - economics, finance, politics, diplomacy, public policy, housing, discrimination, trading platforms - and does it expertly. The author's detailed understanding of such a wide arrange of topics is dazzling, especially his handle on inscrutable national bank mechanics.
Second, if you want a macro understanding of how governments responded to the 2008 financial crisis and how these responses produced such wildly differing results, read this book. The analysis at times is like eating sawdust and it is excruciatingly detailed. There were entire chapters on the European side of the crises that I felt were repetitive and could possibly be removed from the book without losing too much. However, clearly Tooze has done his homework and the data underlying his conclusions is vast.
Third, I learned a lot and I had previously read "Too Big to Fail" by Sorkin and some other lesser known books on the recession. Tooze handles everything from a policy perspective and his data support his overarching theme: the US had a cohesive, massive stimulus program that probably could have gone further, while the EU responded in nibbles. The US rebounded well, albeit not perfectly while the EU went from crises to crises. He also shows that there were massive consequences from the bailout of the financial system: Brexit and cartoonish clown politicians like Trump in the US, and Farage in the EU, who are supported at their roots by a dangerously racist and nationalistic surge of those left behind by the modern global economy. This is an excellent read.
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Reviewed in the United States on November 10, 2018
★★★★★ 4
It's good financial history
Format: Hardcover
especially how the EURO members' values slow down negotiations. I hardly came upon the fluidness in their story line post 2008 in this book, like I do the USAs through media. The FED is king in the USA in both knowledge and strategy (Powell Doctrine). A nice read but it could be shorter; my opinion of course!
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Reviewed in the United States on December 28, 2018
★★★★★ 5
Dazzling, Exhaustive, Exhausting.
Format: Kindle
Mr. Tooze has delivered a tour de force. He has marshaled what surely must be the most comprehensive and informed account of the 2008 crash and its aftermath. Tooze examines in detail and at length, the financial, economic and political forces at work in this gigantic mosaic of global crisis. And he clearly understands the process, providing shrewd insights and informed commentary. It's a heavy lift--a bit like trying to drink out a a fire hydrant; the sheer volume of information is daunting. But the prose is clear and accessible.
Tooze clearly identifies with the the leaders and institutions that mobilized themselves in new and highly unorthodox programs to contain the crisis. That's not popular among critics on both the far left and the hard right. But he illustrates the vapidity of their carping--which largely constitutes a substitute eitherfor understanding the issues or crafting workable solutions.
I would argue that he overlooks the opportunity Obama had in January 200i9 to bend both parties to his will in crafting a real Economic Stimulus plan that the nation could have embraced. Instead he passed the initiative to the House leadership who simply dredged up failed old chestnuts which they newly christened as stimulus programs. Obama bought in and launched its initiative as a partisan weapon--which has only served to widen the current divide. An activist approach that would have drawn from both Republican and Democratic resources--and which was actually directed as a stimulus--might have created a moderate center from which to conduct his business. We'll never know. Obama didn't ever buy into working with others--even n his own party. It was generally his way of the highway. But it's tempting to look back and consider the possibilities.
His concluding message, asks what resources will the current administration--which eschews both institutions and expertise--be able to mobilize in the all too likely event some new global crisis hits.
For now, read and enjoy the (long) but very well informed ride.
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Reviewed in the United States on August 27, 2018
★★★★★ 5
Excellent history of 2008 financial crisis
Format: Kindle
As a non-economist, I wanted to learn about the causes and consequences of the 2008 financial crisis. Overall, Tooze has created what will likely become the definitive history of the crisis. He tells an incredibly detailed story of the rise of power among international banks, and how these banks created securities around mortgages that concealed their riskiness. The blow by blow story often had me in high suspense, testifying to the power of how Tooze put together the background events - and fininacial instruments of mass destruction - that nearly gave us WW Depression 2.0. Personally, I come away with great respect for Paulson, Berneke, Geitner, to name the key actors in this drama - for saving the world economy from ruins. I also come away with an unsolved mystery: why did America not fill its jails with crooked bankers? Yes, I understand from Tooze that the US Fed and Treasury were bankers, and disliked immensely turning in their own. But, zero bankers in jail, after causing what Tooze argues was the greatest bank crisis, ever, including Great Depression 1.0.? It makes no political sense that banks and their leaders nearly destroyed the world economy, but zero went jail, when millions across the world lost homes to foreclosure, suffered severe unemployment, had Democratic election results ignored by financial authorities (mainly in Europe). I am personally convinced this lack of fairness and justice has given us not only Trump but a broad range of autocratic political parties. They claim to protect everyday people, but of course do not. In sum, this rather masterpiece of historical financial analysis is a surefooted guide across the tricky lengthy and politically dangerous terrain of the 2008 financial crisis. Five stars.
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Reviewed in the United States on January 23, 2019