Bernanke is the nimble, intellectually audacious former economics professor from Princeton, while Geithner is portrayed as the pragmatic chairman of the New York Federal Reserve - before his subsequent promotion. McDonald Credit Amy Rader Although an enormous amount of recent attention has been understandably focused on why the government let Lehman Brothers go under, an equal amount of attention might understandably be focused on why Lehman — and other firms like Bear Stearns and A. How did the crisis prompt a reappraisal of the once-impregnable reputation of Alan Greenspan? This would be a distinguishing characteristic of this chapter in American economic history. In piecing together the fullest, most authoritative, and alarming picture yet of this decisive moment in our nation's history, In Fed We Trust answers the most critical questions. While the book is about the 2007 panic, it starts out describing the 1907 panic and how John Pierpont Morgan intervened to stabilize the financial markets This book describes the actions of the Federal Reserve under the direction of Ben Bernanke in coordination with Hank Paulson, Secretary of the Treasury, to combat the Great Panic of 2007-2008.
It will win awards and inspire copycats. In stable times it has a powerful yet unseen effect on the day-to-day life of every person in the world. Bernanke and others were slow to see the seriousness of the problem. A detailed account of how close we came to The Great Depression 2. W47 2009 Dewey Decimal 332. Even I knew that interest rates were being held too low. There was too much political decisionmaking by the Fed Open Markets Committee or Bernanke, Geithner, Warsh, and Kohn.
It is easy to get overwhelmed in reading about the crisis, but this book is worth the effort. A classic example of learn from your mistakes of 1929 , but only time will tell his legacy of these quick decisions. I wouldn't really recommend it to anyone, though, who's not incredibly interested in the Federal Reserve. I came away with a much greater understanding of Okay, being a supporter of a central banking system, and a supporter of the Federal reserve in particular, I was upset at what seemed to be the haphazard, fly-by-the-seat-of-your-pants decision making the Fed engaged in, along with the Treasury, on the bailouts of all the financial institutions. But the financial calamities of last autumn put the global economy on the brink of disaster and led to continuing fiscal woes. They didn't have a plan and did their best to aggressive as they played it out.
In fact, this is someone who will present a case contrary to the book I recently read by Thomas Sowell, who placed all the blame on political stunts designed to make housing affordable to all. If Bear was too big to fail, how could Lehman, at twice its size, not be? The focus of this take on this period is on Ben Bernanke and the Federal Reserve. It was better than Woodward in that respect hard to be worse , especially in the second half of the book, but still very individual-centric. In one of the many informal and light-hearted anecdotes, the Fed had made a deal with a local Subway to keep a fridge stocked with turkey and ha …about a year ago, America was pretty close to falling off the cliff and into another depression. Educates while providing a thrill and a bit of a scare.
This is another account of the financial crisis that began in late 2007 or so and really took off in 2008. In Fed We Trust is a breathtaking and singularly perceptive look at a historic episode in American and global economic history. I could have read the back cover too. To be absolutely clear, the Fed doesn't create anything consumable. This is probably the first complete look at the Fed and Treasury's handling of the financial crisis.
How well did Bernanke, former treasury secretary Hank Paulson, and then New York Fed president Tim Geithner perform under intense pressure? Example: there is a section within Bernanke's biographical chapter that details a prank he played on President Bush one day by coordinating the whole economic staff, along with even Dick Cheney, to wear tan socks as an inside joke among Bernanke and Bush. Under his leadership the Fed spearheaded the biggest government intervention in more than half a century and effectively became the fourth branch of government, with no direct accountability to the nation's voters. Which chilling numbers and indicators made them feel they had no choice? Time to get rid of the Fed. It is a helpful focus and the book is informative in understanding what the Fed did This is another account of the financial crisis that began in late 2007 or so and really took off in 2008. The inability to know that information led to a rather bumbling appro Reading Wessel the analogy of digging a hole came to mind. Brilliant but temperamentally cautious, Bernanke researched and wrote about the causes of the Depression during his career as an academic.
Among them: What did Bernanke and his team at the Fed knowand what took them by surprise? Then when thrust into a role as one of the most important people in the world, he was compelled to boldness by circumstances he never anticipated. In other words, Wall Street might have gotten the message that if its bets paid off, it would get a big payoff; if it rolled a snake-eye, it would get a bailout, reducing the incentive to manage its risks. Once again, they were wrong. Wessel explains the nuts and bolts of central bankery well, although it can still be hard to grasp just how much power and money the Federal Reserve has under its control. In Fed We Trust is a breathtaking and singularly perceptive look at a historic episode in American and global economic history. Why was there so little oversight of the rating agencies that drastically underrated the risk of such flammable, infectious products? Plenty of them are scattered throughout, but there is a small glossary in the back and the author also does attempt to repeat his explanations for convenience.
I found that really sad, but I am glad to know what the political realities of Fed life are. If Bear was too entangled to fail, why was Lehman not? It has great power, yet it is a distinctly undemocratic institution. Though one suspects that longer and deeper investigations of the week of Sept. Brilliant but temperamentally cautious, Bernanke researched and wrote about the causes of the Depression during his career as an academic. Okay, being a supporter of a central banking system, and a supporter of the Federal reserve in particular, I was upset at what seemed to be the haphazard, fly-by-the-seat-of-your-pants decision making the Fed engaged in, along with the Treasury, on the bailouts of all the financial institutions. A good summary of all that went on at the Fed and Treasury during the great crisis, in typical, easily-understood Wessel style.