Having read the Swedish version of this book I have to say that it is one of the most complete and convincing books on the financial crisis that I have read.It covers the role that both the state and the market play in this crisis.
On the behalf of the state in the form of the Federal Reserve pumping out liquidity at an incredibly low interest rate as well as in the form of the failed mortgage institutes Fannie Mae and Freddie Mac issuing loans to people with doubtful payment ability.
And on the behalf of the market in the form of the investmenk banks such as Bear Sterns, Lehman Brothers and Merrill Lynch in investing tremendous sums of money in complex products based on these mortgages that turned foul.
The book argues that it is the short-termism of both the politicians as well as that of the investment bankers that have played a major role in creating this crisis. It also argues that many of the actions implemented by american politicians to save the banks are short-term, have a rather small effect on the economy, costs a lot of money and send the wrong signals to investors in the future.
The book covers a lot more than what I have been able to summarize here, and feel free to add further information on this book, but all in all it is an entertaining and enlightening read that I advice everyone wanting to understand this financial crisis to read.
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