Book review: all the Devils are here

Have you ever seen a complex array of dominoes standing, waiting for the first Domino to hit up, starting a chain reaction will occur where amazing tricks?  I remember seeing things like that many times on "the tonight show with Johnny Carson" back when I was a kid.

When the first dominoes hit during the entire event, do not have time to complete — perhaps in a few minutes at most.  But what do I need to set the dominoes?  Take hours of time, perhaps even a whole day or more.  Often those permission setting tiles a few here and there, so that an accident would only spoil a limited part of what is established.

These standing dominoes is an unstable equilibrium.  This is particularly so in the end, when the tiles are added to remove security from having an accident.

Most books about the focus of the economic crisis in the dominoes falling — is astonishing and upset to watch the disaster unfold, as finally revealed the influence of the system to be viable.

This book is different, that focuses on how the dominoes were created.  How did create the leverage?  How many safety ignored?

The beauty of this book is that we are behind the scenes and describes how they created the conditions that led to a huge new bad debt.  I was small and clumsy child.  My friends would tell me during sports, "there are mistakes, but the error was so great that it required skill."

The same applied to this crisis.  There were many people who have carried their own private advantage, using new financial instruments that were fairly harmless in themselves, but lethal as a group.  So, what were the major economic innovations that enabled the crisis?

Creation of Fannie and Freddie, which led to an over-mortgage Securitization issuance., particularly mortgage loans.  This led to a separation between authors and certificateholders. (And servicers, although the book doesn't go into much servicers.)Having parts covering debt, or GSEs, Guaranty Insurers, the Government or credit default swaps [CDS] Loosening regulations on commercial banks, investment banks and S&Ls. Regulatory arbitrage depositary institutions. Loose monetary policy by the Federal Reserve, together with a disdain for regulating credit.  Seen in Mexico and LTCM as successes, and felt that there was any crisis that could not be resolved with additional liquidity at the Poorly rating agency models., and competition among the rating agencies for obtaining business. regulators required the use of rating agencies for the broad capital modeling.informed, bad assumption that real estate prices can only move upwards. creating value-at-risk, a risk management concept has limited usefulness for the true crisis management creating CDOs. that did not care about much more than performance. the development of synthetic CDOs, which allowed the securitization to apply corporate bonds, MBS and ABS trusts. owns the creation of structures, subprime loan, where he was receiving care were performance. create piggyback loans, so that people could put no money for a House.

There are no heroes in this book, apart from the tragic heroes who warned and was kicked aside the hubris of the era.  Goldman Sachs comes out better than most, because they saw the crisis coming, and to protect themselves from investment banks mot.

I learned a lot reading this book, and I've read a dozen books.  I can't find many other books.  In this book, the authors interviewed hundreds of people who were integral to the crisis, and to read a wide variety of sources previously wrote about the crisis.

I found the book is a riveting read and I read cover to cover.  Could not change the scanning mode. was that well written.

This is the best book on the crisis in my opinion, because it gets you behind the scenes.  You'll learn more from this book than any other on the crisis.

Sophistry

Do not take the trouble to rating agency.  There is pressure to get things right in the cycle, and you receive the right to a timely basis.  These two goals conflict with each other, and stresses that the conflict would have enhanced the book.

Who will benefit from this Book:

Anyone willing to read a longish book, could benefit from this book.  Far is the best book on the crisis.

If you want to do, you can buy it here: all the Devils are here: the hidden history of the economic crisis.

Full disclosure: this book was sent to me, because I asked for this.

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