Lords of Finance is described as the story of the four central bankers who set up the world for the Great Depression. However, the reader can expect to get a whole lot more than that from this book–whether he wants it or not.
It is mostly written in a biographical style, with more incidental details than necessary. The financial side of the story is explained, but not with as much depth or clarity as many other books of this type offer. Some general claims about the macroeconomy are made without enough explanation about macroeconomics to back them up. Continue reading “Book Review: Lords of Finance”
Timothy Geithner was President of the Federal Reserve Bank of New York from 2003 to 2009 and U.S. Secretary of the Treasury under from 2009 to 2013. Many people would have loved to be a fly on the wall in some of the meetings that Geithner was in during the financial crisis, the Great Recession, and the recovery. Geithner provides some insights, but he is also overly concerned with addressing his critics, especially those he calls “moral hazard fundamentalists.”
He makes some good analogies, although he repeats the same ones again and again, and I don’t think he addresses the fundamental problems that his critics are trying to get to. Sure, TARP assuaged the market by injecting capital into the struggling financial sector, and the taxpayers made a profit off the program in the end. Perhaps moral hazard arguments in reference to TARP are overblown. However, does this really settle the argument about whether or not the government should be bailing out companies? Should calming a volatile market really be the role of the federal government? Continue reading “Book Review: Stress Test”