I have read several books on the economic crisis that has gripped the country over the past 3-4 years and I found this book to be not only the most informative but entertaining. The author has a knack, or gift, to make complicated financial subjects like credit default swaps, derivatives, collaterized debt obligation etc. very easy to understand particularly if you are not too familar with complex finacial terminology.
While the author provides a great introduction on original government subsidies like railroads, some for the greater good, accelerating to the first major bailout Lockheed Martin in 1971 and later Chrysler and later yet, Savings and Loans. As the author notes, these bailouts set the potential for government and the tax payer to take on great liabilities. What is also excellent is the authors review and discussion of unintendede consequences,, what is the effect in the long run. For example, although hard to lose so many jobs, if Chrysler failed, what would the effect have been on Ford, GM and UAW? Would they all ahve been more inclined to be more efficient, in design and build quality cars, reasonable wages and benefits?. He also covers the creation of the Fed and the course it has taken particularly Alan Greenspan and the actions by Presidents as far back a s Reagan for de-regulaton. The book is full of great quotes by those directly involved such as Greenspan's quote that derivatives need not be regulated and his belief that the market self corrects (Adam Smith's invisible hand). The author includes at least one historical quote to start each chapter that can often amuse the reader like Sam Rayburn's "A jackhouse can knock a barn down but it takes a carpenter to build one". The author certainly gets into the firms that failed and or got bailouts; Citibank, Leahman Brosters, Bear Stearns and perhaps most facinating on how the once solid AIG self destructed. Goldman Sachs role is quite fascinating in how they interacted with AIG to protect their undervalued investments in real estate to insure their investments. The authors own insights and free use of his opinions are informative and even entertaining. The author closes with who is responsible and he has quite a diversivied list from Robert Rubin to Phil Graham who spurred de-regulation that open the gates for finacial mischief. Depressing that those that engoneered our massive bailut have direct ties to the industry they were bailing out and that even under Obama, the connections are still there. The author even includes suggestions from a number of finacial experts to help resolve the problems at the end. Consistent with the over vew of other authors that those approving home owner loans were more concerned that the loan lasted long enough to pass on to who purchased them and then these large finacial companies were eager to package them virtually without examination, virtually like buying a car without looking under the hood or taking a test drive. Well told, excellent explanations and I look forward to the updated version and the author's next book.

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