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In “After the Music Stopped,” Alan Blinder reveals the abuses that led to the financial crisis and the remedies. Today’s edition brings us to Alan Blinder’s “After the Music Stopped,” a major analysis of the financial crisis and subsequent response by central. After the Music Stopped has ratings and reviews. Alan Blinder explores in depth the role of the fed and treasury in getting the us economy out of the.

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The PDCF made it much easier to lend money to securities firms by, for example, broadening the range of eligible collateral. Unless you are well versed in economics and the financial system, I would recommend that you wait until the movie comes out. This is as good of a work as any to date in putting many of the events that led to The Great Recession into common parlance as any I’ve seen thus far.

If you want to understand monetary and fiscal policy in the face of financial Armageddon, this is a must-read.

After the Music Stopped | Beneath the Surface

Alan Blinder explains with great clarity the different levers the US Government, particularly the Fed, pulled in response to one of the greatest financial crisis in modern history — averting total financial meltdown but still coming out as one of the villains.

Politicians love to set the bar low and then heap praise upon themselves when little is accomplished. Tap here to turn on desktop notifications to get the news sent straight to you. A boom also occurred in mortgage-backed securities pools of mortgages sold to investorswhich paid higher interest than Treasury bonds but seemed almost as safe as long as the risk of default was believed to be low. TARP seems to have made money for the government. And to an amazing – and certainly misunderstood – extent, they worked.

I’ve always appreciated writing that successfully explains complex issues in digestible ways without dumbing things down.

If there is no room for backseat drivers, and that’s very much the tone of the book, leave him alone. He starts with seven causes of the crash. I personally disagree a bit with te author on this.

What is that case? Quotes from After the Music S May 20, Jim rated it really liked it. It describes a problem created by complicated and opaque financial products, excessive leverage, and lax or lacking regulation. For example most folks would see the immense amount of money used to stem the crisis agter handouts to bankers and others who got us into trouble in the first place.


The companies responsible for rating securities did a terrible job, often giving AAA ratings to securities with substantial risks. That is by far the strongest part of the book.

Alan Blinder’s After the Music Stopped

Blinder writes conversationally; the book reads smoothly. This issue as of the publishing of the book has not yet played out some six years latter largely because of politics. Blinder, a Democrat, was a vice chairman of the Fed from Third, the book is exquisitely written. Within this climate of lax regulation, lenders lowered their lending standards and increased their subprime lending.

After the Music Stopped by Alan Blinder

What a tale — a Shakespearean tragedy. They exported to us far more than they imported from us, maintaining this pattern partly by keeping their currencies weak sopped to the dollar. It’s enough to make you take the gas pipe. Email required Address never made public. After the Music Stopped makes sense of what I experienced through soundbites and daily news stories. Open Preview See a Problem? Tsopped goes for his ten commandments and seven recommendations.

His highly regarded Dodd Frank has not fared well after the election. Some authors, however see my posts on Kalleberg and Stiglitzfor examplesee US inequality as too extreme to be attributable just to the same forces affecting economies everywhere.

All things considered, the book moves along pretty quickly while also managing to be thorough. We all remember the financial meltdown. Figuring out how to respond – and provide evidence of the response – is another arguably more difficult problem.

The bubbles in housing and mortgage-backed securities developed in a situation where some people were unusually eager to lend, while others were unusually willing to borrow. Anyways I won’t delve any further but if you aren’t totally sure what it was all about I do recommend this book as it will lift the blinders to a considerable degree for the average person: Some of this may be true; it’s certainly become the conventional wisdom.

Second, the book also stpoped the various policy responses to the crisis according to how effective they have been.


His writing style is generally pretty plain, though writing an exciting description of a Collateralized Debt Obligation may not be possible even for the most talented of writers.

This hard-hitting expose will be close to home for most people – after all, no matter how poor or how wealthy we may find ourselves, we’re all still affected by the Financial Crisis in all kinds of little ways.

The expansion of wealth at the top, aided and abetted by generous tax cuts, provided still more capital that went in search of lending opportunities. In terms of a one-stop primer on this monumentally important event in recent history that is accessible to the lay person, I doubt you are likely to find anything better. It covers the causes of the crisis, the failure of various financial services institutions, TARP, responses within the Fed, the economic stimulus bill, and finally Dodd-Frank.

Both are perceived as giveaways to banks, which they were not. But hey given it probably messed up your life maybe you should read more than one on this topic.

The author points out that most people have the wrong impression of both the Bush TARP and the Obama stimulus which the public equates as being the same thing. He served on the Federal Open Market Committee This is a good, even-handed synopsis of the financial crisis of and the political response that occurred in the years that followed. Alan Binder’s book has something to make everyone angry, from the far left to the far right. We’re talking about a financial crisis of surpassing complexity, one that both economists, central bankers and regulators mostly missed, and that posed a variety of counterintuitive demands, not to say extraordinary anxieties, on ordinary citizens.

Blinder, you feel, has written this book as a mere starting point. The unlikely heroes of this book are George W Bush though he als Well as they all do it says: Synopsis One of our wisest and most clear-eyed economic thinkers offers a masterful narrative of the crisis and its lessons.