We have just experienced the worst financial crash the world
has seen since the Great Depression of the 1930s. While real
economies in general did not crash as they did in the 1930s, the
financial parts of the economy certainly did, or, at least, came
very close to doing so. Hundreds of banks in the United States and
Europe have been closed by their supervisory authorities, forcibly
merged with stronger partners, nationalized or recapitalized with
the tax payers' money. Banks and insurance companies had, by mid
2010, already written off some 2000 billion dollars in credit
write-downs on loans and securities. In this book, Johan Lybeck
draws on his experience as both an academic economist and a
professional banker to present a detailed yet non-technical
analysis of the crash. He describes how the crisis began in early
2007, explains why it happened and shows how it compares to earlier
financial crises.
· Integrates macro theory and financial facts to provide a
detailed yet non-technical analysis of the recent financial crisis
· Analyzes the institutional framework that allowed the crisis to
develop and discusses recent changes in relevant legislation and
institutions · Presents a unique, global perspective on the crisis
from someone who has extensive experience as both an academic
economist and a professional banker