9 of 11 people found the following review helpful:
5.0 out of 5 stars
Complicit, January 27, 2010
This review is from: Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable (Bloomberg) (Hardcover)
There aren't many people who can say they've sailed through this latest financial blip unscathed. Most of us have been impacted in some way or another. Many of us have looked for someone to blame the credit crisis on. Mark Gilbert thinks we're all to blame either by active participation or by being bystanders.
In Complicit: How greed and collusion made the credit crisis unstoppable, he explains why. The securities industry grew with leaps and bounds over the past few years and society as a whole reaped the rewards of freely available credit at super-low interest rates. The global financial authorities like the government, the banks and the money managers all looked the other way while lining their pockets.
The list of those to blame doesn't stop there. Realtors freely took advantage of the increase in home buying and appraised houses at fictitious levels. Banks and credit unions lent money to people who had no hope of paying back their mortgages. Homeowners bought properties at rates they knew they wouldn't be able to afford to repay. The average price of a U.S. single family home doubled in the period from 1989 to 2003 from $113,000 to $229,000.
In 2006, at the same time the US housing marketed rocketed, the global derivatives market grew at the fastest pace on record. The total outstanding amount grew by 40% to an amazing $415 trillion according to Gilbert. This uncheck growth could only continue as long as people kept ignorning the warning signs of a coming collapse. In 2006, some markets began to make the connection and the impact of years of risky financial decisions began to be felt.
Mark Gilbert offers an in depth explanation of how this credit crisis grew to the point where it was felt around the world. He explains how each segment of the market was involved in the crisis and backs up his findings with facts, figures and percentages.
If you want to understand how this became a crisis so that you can be aware of the warning signs if it happens again, I highly recommend this informative read.
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
3 of 3 people found the following review helpful:
5.0 out of 5 stars
Credit crunch for dummies, February 10, 2010
This review is from: Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable (Bloomberg) (Hardcover)
Mark's orange-box approach to finance is always refreshing. As in his regular columns, Complicit avoids financial jargon, and shuns the usual splurge of rumour and myth. His specialty is often in spotting the obvious when everyone else has missed it, which makes the credit crisis an ideal target. But the book also carries a harsh message which is that if you allow yourself to be uniformed about something that matters, you can't then complain when it smacks you on the back of your head. In essence, we let the "bankers" turn the health of the global economy into their day spa. If we don't step up and take charge, it will happen again, and again. If you don't let someone take advantage of you, they can't take advantage of you... Mark says it's time to take charge... I'd recommend this book as compulsory reading for economics students at every level and anyone who has even a casual interest in finance and markets.
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
3 of 3 people found the following review helpful:
5.0 out of 5 stars
Future Classic?, February 10, 2010
This review is from: Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable (Bloomberg) (Hardcover)
Gilbert sets out the timeline and triggers for the Global Recession in an easy-to-read style that will appeal to all and is well enough explained for those outside of the City to follow easily.
None of the "I single-handedy invented the CDO market" or "I told you it was going to happen in my previous book" rubbish but an in-depth explanation from a man who was sat in the Bloomberg news room watching it all unfold.
"Complicit" has the potential to be compulsory reading for future generations wishing to try and learn from the mistakes that were made.
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
