PublishedPortfolio, August 2012 |
ISBN9781591845508 |
FormatHardcover, 320 pages |
Dimensions22.4cm × 16.4cm × 2.6cm |
Conventional wisdom blames the financial crisis on Wall Street and the mortgage industry for using low down payments, teaser rates and other predatory tactics to seduce home owners into assuming mortgages they couldn't afford. It blames average Americans for borrowing recklessly and spending too much.
And it blames the tax policies and deregulatory environment of the Reagan and Bush administrations for encouraging reckless risk taking by wealthy individuals and financial institutions. The conventional wisdom masks the real causes of our economic disruption and puts us at risk of facing a slew of unintended and potentially dangerous consequences. This book addresses many essential but overlooked questions, such as: If the United States had become a nation of reckless consumers rather than investors, why did productivity soar in the years leading up to the meltdown? If predatory bankers took advantage of home owners, why did down payments decline, thereby shifting risk from home owners to lenders? If the risks were easy to spot, why did top political and financial advisers encourage lenders to make unsound investments?
