Between Debt and the Devil

Between Debt and the Devil: Money, Credit, and Fixing Global FinanceBetween Debt and the Devil: Money, Credit, and Fixing Global Finance by Adair Turner

My rating: 4 of 5 stars

A great story about the financial crisis of 2008 that should never have taken place according to leading economists and policy makers at that time. In essence a story about human hubris believing that complexity and uncertainty can be managed through human created decision models. The author also describes the root causes of the crisis and in summary one could argue that the Central Banks turned off the alarm system without addressing the real fire i.e. debt overhang. Even worse, it is clear that the debt crisis which was created is cured by another debt crisis (ref. Draghi’s et al programmed for ultra-loose monetary policies). So the debt overhang remains and if not tackled with alternative policy measures will give rise to secular stagnation (no growth) for decades. Therefore it is good to read in the book which alternative paths could be explored. So positive to learn that there are ways out of this economic misery. Hopefully policy makers start considering them.

I recommend this book to everyone who wants to have a balanced view on the financial crisis of 2008 as well as the way out. At the end it will help you to better judge current policy from a societal standpoint as well as from a personal investor’s standpoint.

View all my reviews

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s