Whoops!: Why Everyone Owes Everyone and No One Can Pay

John Lanchester

Physical

In Circulation

There's probably a word in German for that feeling you get when you can understand something while it's being explained to you, but lose hold of the explanation as soon as it stops. A lot of writing about the credit crunch has that effect: you can grasp it while it's going on, and then as soon as it's over, you can no longer remember the difference between a CDO, a CDS, an MBS, and a toasted cheese sandwich. Whoops! makes it possible for all of us to grasp how we found ourselves in this predicament.

What went wrong? In 2000, the total GDP of Earth was $36 trillion. At the start of 2007 it was $70 trillion. Today that growth has gone suddenly and sharply into decline, with an effect roughly resembling that of putting a car into reverse while doing seventy down a motorway.

John Lanchester travels with a cast of characters - including reckless banksters, snoozing regulators, complacent politicians, predatory lenders, credit-drunk spendthrifts, and innocent bystanders to understand deeply and genuinely what is happening and why we feel the way we do.

What will you learn from this book

  1. Complex Financial Instruments: Discusses the complexity of financial products such as mortgage-backed securities and derivatives, which contributed to the crisis.

  2. Subprime Mortgage Crisis: Details the collapse of the housing market and the subsequent defaulting of subprime mortgages as a pivotal factor in triggering the crisis.

  3. Banking Sector Risks: Explores the excessive risks taken by banks and financial institutions, including high leverage and inadequate risk management practices.

  4. Global Economic Interconnectedness: Examines how the interconnectedness of global financial markets amplified the impact of the crisis worldwide.

  5. Lack of Regulation: Highlights the regulatory failures and oversight gaps that allowed risky financial practices to go unchecked and contributed to the crisis.

  6. Role of Credit Rating Agencies: Discusses the role of credit rating agencies in providing misleading ratings for complex financial products, contributing to investor confidence.

  7. Government Interventions: Analyzes the series of government interventions, bailouts, and stimulus measures taken to stabilize financial markets and prevent further collapse.

  8. Market Downturn: Details the extreme market volatility, panic, and loss of investor confidence that characterized the financial landscape during the crisis.

  9. Impact on Society: Explores the broader societal impact of the crisis, including job losses, home foreclosures, and its effects on ordinary citizens and the global economy.

  10. Calls for Reform: Reflects on the need for financial reforms, improved regulations, and lessons learned to prevent similar crises in the future.

Language English
ISBN-10 1846143225
ISBN-13 9781846143229
No of pages 240
Font Size Medium
Book Publisher Allen Lane
Published Date 28 Jan 2010

About Author

Author : John Lanchester

2 Books

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