Too Big to Save? How to Fix the U.S. Financial System

by Robert Pozen, Robert J. Shiller (Foreword)

Industry luminary Robert Pozen offers his insights on the future of U.S. finance The recent credit crisis and the resulting bailout program are unprecedented events in the financial industry. While it's important to understand what got us here, it's even more important to consider how we should get out. While there is little question that immediate action was required to stabilize the situation, it is now time to look for a long-term plan to reform the United States financial industry. That is where Bob Pozen comes in. Perhaps more than anyone in the industry, Pozen commands the respect and attention of the public and private sector. In this timely guide, he outlines his vision for the new financial future and provides actionable advice along the way. To Pozen, there are four high-priority problems that must be addressed, and this book puts them in perspective
With Too Big to Save , you'll learn the likely future of the finance industry and understand why changes have to be made.

Genres: Finance, Economics, Nonfiction, Politics

480 pages, Hardcover

First published January 1, 2009

Reviews

[Michal Linhard · Rating 2 out of 5]

Didn't finish all of it, just skipped through. I wasn't particularly interested in what US shouldn't and should have done during the crisis.

[E · Rating 5 out of 5]

Expert Robert Pozen offers insights on U.S. finance

Stable, sustainable economic growth requires new approaches to financial regulation. In this insightful book, Robert Pozen explains how speculative securities underwriting, easy mortgage financing and poor regulation led to the worst U.S. recession since the 1930s, as well as a worldwide financial crisis. An industry leader in investment management, Pozen proposes regulatory reforms to make the financial system less vulnerable to similar problems in the future. Readers may disagree with some of Pozen’s recommendations, and as the U.S. government adjusts its regulation of financial institutions, some of his proposals may become moot. However, his accessible, informed text also offers a remarkably clear account of how the recession unfolded in the United States. That’s more than enough reason for getAbstract to recommend this intelligent book to anyone interested in global financial fragility and how to fix it.

[Sam Dye · Rating 4 out of 5]

Some of this book was over my head but I learned a lot and will get it out of the library again. In a very clear and unbiased way he goes through all the mistakes that have been made and he proposes solutions. The most interesting to me was the effect of Alan Greenspan keeping the Federal Funds Rate low from 2001 to 2005 (in violation of the Taylor Rule which said that the rate should have started up in late 2001 instead of going down further). This caused all the various types of pension and hedge funds to seek better return and lo and behold there were the MBS's (Mortgage Based Securties) with a fake AAA rating. The unregulated mortgage lenders then went to town and the whole thing blew up and caused worldwide problems because financial institutions all over the world bought these bad securities. These rules have just been changed in 2008 and 2009! And the story of poor oversight and bad or no (big bank influenced) laws goes on and on.

[Ldrutman Drutman · Rating 4 out of 5]

Good, thorough overview of the financial crisis and what to do about it. A bit dry, but the perfect book for somebody in my current position.