FF130

“Financial Fiasco, How America’s Infatuation with Homeownership and Easy Money Created an Economic Crisis,” is a terrific read.  In layman’s terms (the dang thing reads like a novel!) Senior Fellow at the Cato Institute, Johan Norberg lays out the case of the perfect storm that led to our recent difficulties.  In six short chapters, Norberg catalogs the combination of monetary and housing policy coupled with financial innovation that created the disaster.  It is apolitical in its disbursement of blame, despite coming from the conservative Cato Institute.

This is a very readable and understandable book that documents the massive failure of risk management in corporate governance and in the Federal government.  He ably lays out the results of the law of unintended consequences and frankly, paints a rather bleak picture for the foreseeable future.  He is strongly opposed to the historic levels of debt that are being incurred and is deeply troubled by the psychology of risk abatement that Federal bailouts has caused – the “too big to fail” mentality is leading to poor decision making and a potential repeat of what has occurred over the last two years.

This book should be a “must read” for all citizens so we better understand what has happened and (let us pray!) we can educate our leaders in the corporate world and in government on what NOT to do.

Click on the picture of the book above if you are interested in purchasing.

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