The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis [Paperback]

Graham Turner (Author)

Book Description

Publication Date: June 20, 2008

This book argues that the current financial turmoil signals a crisis in globalisation that will directly challenge the free market economic model. Graham Turner shows that the housing bubbles in the West were deliberately created to mask the damage inflicted by companies shifting production abroad in an attempt to boost profits. As these bubbles burst, economic growth in many developed countries will inevitably tumble. The Japanese crisis of the 1990s shows that banks and governments may struggle to contain the fallout. The problem has not been limited to the US, UK and Europe: housing bubbles have become endemic across wide swathes of emerging market economies. As the West slides, these countries will see an implosion of their credit bubbles too, shaking their faith in the free market. Turner is an experienced and successful economic forecaster, whose opinions are sought by large international banks and top financial journalists. Drawing from his first hand experience of the Japanese property crash of the 1990s, he presents his analysis in a clear and persuasive style, showing that the end of housing market growth spells disaster for neoliberal globalisation.

Editorial Reviews

Review

'Graham Turner is one of only a handful of economists to understand the roots of the current financial crisis, its implications for all of us and - crucially - what should be done now. I strongly recommend you read this book.' - Larry Elliott, Guardian

 

'A timely analysis of the pressures on world money markets and the fundamental weaknesses in the global financial system. Graham Turner is a clear and independent voice in a confused and noisy world.' - Hamish McRae, Independent

About the Author

Graham Turner is the founder of GFC Economics, an independent economic consultancy which provides forecasting services for some of the world's largest banks. He has worked in the financial sector for over 20 years, spending the 1990s working for Japanese banks.

Product Details

• Paperback: 256 pages
• Publisher: Pluto Press (June 20, 2008)
• Language: English
• ISBN-10: 0745328105
• ISBN-13: 978-0745328102
• Product Dimensions: 8.3 x 5.3 x 0.6 inches
• Shipping Weight: 11.4 ounces (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #1,469,413 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

5 of 6 people found the following review helpful:

5.0 out of 5 stars An important issue. Excellent analysis., November 10, 2008

By 

G. A. McHale (Koganei-shi, Tokyo Japan) - See all my reviews
(REAL NAME)   

This review is from: The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis (Paperback)

Graham is one of the best applied economists of our generation. He was the first economist to go public about the Japanese banking crisis in the 90's and almost lost his job over it whilst working for a Japanese Securities Company. He correctly anticipated the economic consequences of the reunification of East and West Germany on the German economy. He has a long track record of highly accurate predictions. Note that this book was written substantially prior to the public meltdown of the banking system in October 2008. Graham Turner has identified the causes and anticipated the outcomes of the macro-economic trends of the last 3 decades. He goes further than most economists and addresses the political dynamics that underpin the lack of regulation in the Western banking systems.

For the purposes of full disclosure, I worked professionally with Graham for approximately 6 years in the financial markets. He is a person of great integrity. During that period of time we never once discussed politics. His analysis was always based on a highly objective independent research into the causes of the both macro and micro economic phenomenae. I have not been in touch with Graham for over ten years. It was a complete surprise for me to see Graham on a TV broadcast commenting on the current crisis, when they mentioned this book.

Any person interested in the reality of the current collapse of the banking system, the underlying causes and the likely outcome should read this book. It is the best analysis that I have seen so far, and comes from an Economist who has an exceptional track record.

I cannot recommend this book more strongly.

1 of 1 people found the following review helpful:

4.0 out of 5 stars Fascinating; well worth the read, April 30, 2010

By 

Daniel Sterling (New Jersey) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis (Paperback)

I found the book fascinating. It explained a number of economic trends I had observed but did not correctly understand. I developed a much better understanding of what happened over the last couple of years and even continues today. My only critique is that I wish Mr. Turner had done more with recommendations on how to fix the imbalances he has highlighted. The book left me depressed knowing that things are moving in the wrong direction and the politicians seem to not understand why... even if they did, I believe they would not have the will to change course.

I'm looking forward to the next book and hoping to learn more.

2 of 4 people found the following review helpful:

3.0 out of 5 stars Beach Reading for Finance Junkies, April 9, 2009

By 

Reader (Arlington, Virginia) - See all my reviews
(VINE VOICE)   

This review is from: The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis (Paperback)

"The Credit Crunch" was rushed into print last year to tap the market for books on the global economic crisis. It's repetitive, disorganized, and filled with long digressions that seem written for a different setting. Worst of all, it is now seriously outdated, so quickly have events developed over the last twelve months.

On the other hand, "The Credit Crunch" has enough strengths to merit a three-star rating:

-- It's breezy. It really could be read at the beach.

-- It's smart. Two detailed chapters dissect the failed Japanese response to asset deflation in the 1990s.

-- It's practical. The book stresses over and over again that monetary authorities have to take bubbles seriously.

-- It has a Big Idea. The author believes that the movement of manufacturing production from developed countries to low wage countries (especially China) has depressed demand and generated deflationary tendencies across the world economy. With inflation tamed, central banks have been free to ease up on monetary policy. The resulting avalanche of debt has fueled asset bubbles in the US and elsewhere, with catastrophic results for financial stability.

Bottomline: Get a used copy of "The Credit Crunch," read it once (quickly), and then donate it to a library book sale.