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The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis
 
 

The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis (Paperback)

by Graham Turner (Author)
3.5 out of 5 stars See all reviews (8 customer reviews)
RRP: £14.99
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Product Description

Review
'Graham Turner is one of only a handful of economists to understand the roots of the current financial crisis, its implications for all of us and - crucially - what should be done now. I strongly recommend you read this book.' --Larry Elliott, Guardian

A timely analysis of the pressures on world money markets and the fundamental weaknesses in the global financial system. Graham Turner is a clear and independent voice in a confused and noisy world. --Hamish McRae, Independent

Graham Turner is a sharp observer of developments in the financial markets and was way ahead of the pack in warning about the risks of the American credit boom. Here, he delves deep into the origins of the credit crunch, laying the blame not just with Wall Street, but with the inevitable consequences of unfettered globalisation. --Heather Stewart, Observer

Product Description
This book argues that the current financial turmoil signals a crisis in globalisation that will directly challenge the free market economic model. Graham Turner shows that the housing bubbles in the West were deliberately created to mask the damage inflicted by companies shifting production abroad in an attempt to boost profits. As these bubbles burst, economic growth in many developed countries will inevitably tumble. The Japanese crisis of the 1990s shows that banks and governments may struggle to contain the fallout. The problem has not been limited to the US, UK and Europe: housing bubbles have become endemic across wide swathes of emerging market economies. As the West slides, these countries will see an implosion of their credit bubbles too, shaking their faith in the free market. Turner is an experienced and successful economic forecaster, whose opinions are sought by large international banks and top financial journalists. Drawing from his first hand experience of the Japanese property crash of the 1990s, he presents his analysis in a clear and persuasive style, showing that the end of housing market growth spells disaster for neoliberal globalisation.disaster for neoliberal globalisation.

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Front Cover | Copyright | Table of Contents | Excerpt | Index
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Customer Reviews

8 Reviews
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Average Customer Review
3.5 out of 5 stars (8 customer reviews)
 
 
 
 
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13 of 14 people found the following review helpful:
5.0 out of 5 stars Informative, insightful and thought provoking, 15 Jul 2008
By C. P. Smith (Bristol, UK) - See all my reviews
(REAL NAME)   
The outline in the Amazon `product description' above is a fair summary, but it should be stressed that there is nothing sensational or overtly political about this book. It tries to be a reasoned economic assessment of our current plight, although doubtless it will upset some `free market' and `pro-business' zealots. It is a very timely and its predictions seem to be being born out - for example on page 191 we read `the US Treasury .... will be forced to act, rescuing more banks by injecting public sector capital and, ultimately, taking many into public ownership'. I write this on the same day that the US Treasury has proposed to provide as much support as is required to `Fanny May' and `Freddie Mac' and a couple of days after the Californian bank Indy Mac was nationalised.

Some may consider that the two chapters that discuss what happened to Japan after its speculative bubble went bang in 1990 have their longeuers. However, they give us some insight into how difficult it is to get out of a post bubble slump - particularly given the mindsets of economists and central bankers - and what we might have to look forward to (not a lot if Japan is anything to go by).

This book should be readily understood by anybody with an interest in economic and political affairs. There are lots of clear and very informative graphs and not too much heavy economic theory. It explains a lot but is hardly cheering - perhaps Gordon Brown (of whom the author has remarked elsewhere [Spectator Business website] `I think he will go down as the worst Chancellor in history') has seen a copy - it would explain his current demeanour!
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6 of 7 people found the following review helpful:
5.0 out of 5 stars Credit Crunch, 17 Oct 2008
By Mr. J. Ward (Leeds, UK) - See all my reviews
(REAL NAME)   
I found this in an incredibly informative and insightful book about the present economic situation. It makes sense - though I am sure that some aspects of the book are controversial. The author challenges the reader to consider the origins of the credit crunch. The roots are found in free trade and the endless cost cutting pursuits of large corporations in advanced nations who are preoccupied with driving down costs in order to inflate their bottom line; hence the burgeoning trend towards outsourcing to low waged economies. But that is just the start. The book is highly comprehensive and readable.
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2 of 3 people found the following review helpful:
4.0 out of 5 stars Informative and essential., 31 Dec 2008
By Phil Morse "Web worker" (Malaga, Spain) - See all my reviews
(REAL NAME)   
I bought this book because of my work in real estate and a desire to try to understand what is going on with housing and the credit crunch. It turns out that the book also lets you in on why house prices have risen so quickly in many markets over the past few years too.

The book's basis premise is that the whole boom since the last recession around the time of the dot-com crash at the turn of the century has been caused by a huge jump in credit. This in itself was sanctioned by the US/UK and other governments because they saw manufacturing moving overseas to cheaper countries, and predicted deflation, if not downright full recession if the economy was not kept pumped up - and credit was the way to do it.

Trouble is, use credit to pump up the economy and you pump up house prices too, and it is unsustainable - a bit like a pyramid scheme. It has to crash - and crash it has. One of the most telling graphs in the book shows mortgage application approvals and demand in the economy, and the close correlation between them. so, demand fuelled by credit leads to housing bubbles... and crashes.

From my A-level Economics I remembered the monetarist vs Keynesian debate that underpins the arguments in this book, but I am not informed enough to know whether I agree with Mr Turner - however there is certainly food for thought here, and I would recommend it to anyone who wants a deeper understanding of the global crash.

In Turner's view, we were got into this by our governments and the banks, so if he's right, let's hope they can now get us out of it again..
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Most Recent Customer Reviews

1.0 out of 5 stars Good analysis, poor politics

Graham Turner is the founder of a firm that `provides forecasting services for some of the world's largest banks'. He writes, "the free trade agreements ... Read more
Published 1 month ago by William Podmore

4.0 out of 5 stars RE: THE CREDIT CRUNCH-GRAHAM TURNER
This is a well written analysis of the current financial crisis. The author has gone through the creation of the housing bubble in the West and the credit bubble in the East... Read more
Published 4 months ago by K. Tsang

4.0 out of 5 stars The Credit Crunch
This book is concise and imaginative and makes very ineresting and informative reading. However, armed only with an 'A' level in economics gained many years ago, I felt my... Read more
Published 4 months ago by Mrs. Julia Winter

3.0 out of 5 stars 'not bad!'
Parts of the book were very interesting and insightful, however I wish more case studies/theories were used rather than so many figures and statistics. Read more
Published 5 months ago by D. J. Hocking

2.0 out of 5 stars A difficult read
I found this very hard to get through - probably because I probably am one of those pro-business zealots. Read more
Published 8 months ago by Financial Phil

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