| ||||||||||||||||||
 Trade In this Item for up to £0.25
Trade in Freefall: Free Markets and the Sinking of the Global Economy for an Amazon.co.uk gift card of up to £0.25, which you can then spend on millions of items across the site. Plus, get an extra £5 when you trade in books worth £10 or more until June 30, 2012. Trade-in values may vary (terms apply). Find more products eligible for trade-in.
|
Frequently Bought Together
Product details
|
More About the Author
Product Description
Review
Freefall is a spirited attack on Wall Street, the free market and the Washington consensus.--David Smith
--This text refers to an out of print or unavailable edition of this title.
Product Description
This devastating and inspiring book, by one of the world's leading economic thinkers, lays out not only the course of the financial crisis which began in 2007, but its underlying causes, and shows why much more radical reforms are needed than are currently being contemplated if we are to avoid similar 'systemic' crises in the future. It shows why the bailout has been only marginally effective and how it could have been much more so, and outlines the enormous opportunity - not yet taken - to design a new global financial architecture. It is highly critical of many of the actions not only of George Bush's administration, but also of Barack Obama's. It shows why the bulk of the cost of recovery should be borne by those in the financial sector - not just for reasons of natural justice, but for compelling economic reasons also. More than any of this, it reminds readers to think constantly about what economies are for, and the human purposes they serve.
Freefall is an instant classic, combining an enthralling whodunit account of the current crisis with a bracing discussion of the broader economic issues at stake.
Inside This Book
(Learn More)
Browse and search another edition of this book.
Browse and search another edition of this book.
Tags Customers Associate with This Product(What's this?)Click on a tag to find related items, discussions, and people.
|
Sell a Digital Version of This Book in the Kindle Store
If you are a publisher or author and hold the digital rights to a book, you can sell a digital version of it in our Kindle Store.
Learn more
What Other Items Do Customers Buy After Viewing This Item?
Customer Reviews
Most Helpful Customer Reviews
44 of 50 people found the following review helpful
Format:Hardcover|Amazon Verified Purchase
As the Former Chief Economist of the World Bank, and a Nobel Prize Winner, Stiglitz clearly can write with authority on the world economy, and this book certainly deserves to be on the reading list of all candidates and interested voters in the next Election, if they would like to understand why American Style Capitalism has brought such abysmal consequences to America and the U.K..
The markets failed their in societal functions of managing risk and the mixed motivations of the Rating Agencies meant that the Institutions were not adequately appraised of the risks that they were taking. "In short, there was little or no effective quality control". Securitization did indeed spread risk but this was more than negated by the asymmetries of information. In other words people had little idea of the detail of what they were buying.
Externalities are to economics what `collateral damage' is to the military; the damage caused to those who were not involved in the transaction. "If there are externalities, one can't logically believe in market fundamentalism." Contagion between financial institutions is of course the `quintessential externality'.
Many who were sold sub-prime mortgages were ill equipped to understand what they were taking on, and yet they lost their homes, life savings, and dreams of a better future. Many were driven to divorce, some to suicide. The `deregulation frenzy' of the eighties and nineties left these people ill protected. Some of the thrust for deregulation was undoubtedly inspired by political campaign donations by Financial Institutions.
Many of the financial products that were bought and sold by the banks were based on flawed models which were often evaluated by `lawyers untrained in the subtle mathematics of the models'.
The Obama administration avoided nationalizing the banks, but it stands accused of socialising the losses and privatising the gains - what Stiglitz calls `Ersatz Capitalism'. Paradoxically the belief in free markets has led to the largest Government intervention in history. It has also been shown conclusively that the term `self-regulation' is an oxymoron.
Serious though the subject matter is, this book is easy to read, and offers many excellent ideas on the way forward for a better kind of capitalism.
The markets failed their in societal functions of managing risk and the mixed motivations of the Rating Agencies meant that the Institutions were not adequately appraised of the risks that they were taking. "In short, there was little or no effective quality control". Securitization did indeed spread risk but this was more than negated by the asymmetries of information. In other words people had little idea of the detail of what they were buying.
Externalities are to economics what `collateral damage' is to the military; the damage caused to those who were not involved in the transaction. "If there are externalities, one can't logically believe in market fundamentalism." Contagion between financial institutions is of course the `quintessential externality'.
Many who were sold sub-prime mortgages were ill equipped to understand what they were taking on, and yet they lost their homes, life savings, and dreams of a better future. Many were driven to divorce, some to suicide. The `deregulation frenzy' of the eighties and nineties left these people ill protected. Some of the thrust for deregulation was undoubtedly inspired by political campaign donations by Financial Institutions.
Many of the financial products that were bought and sold by the banks were based on flawed models which were often evaluated by `lawyers untrained in the subtle mathematics of the models'.
The Obama administration avoided nationalizing the banks, but it stands accused of socialising the losses and privatising the gains - what Stiglitz calls `Ersatz Capitalism'. Paradoxically the belief in free markets has led to the largest Government intervention in history. It has also been shown conclusively that the term `self-regulation' is an oxymoron.
Serious though the subject matter is, this book is easy to read, and offers many excellent ideas on the way forward for a better kind of capitalism.
15 of 17 people found the following review helpful
Format:Paperback
I am a chemist, not an economist, and being interested in understanding what went wrong with the world economy in the past few years, began reading some books on the subject. Having read some neoclassical (Chicago School) opinions (Raghuram G. Rajan's (with Luigi Zingales) "Saving Capitalism from the Capitalists" and "Faultlines"), I was left with the unsatisfying sensation that something was missing in their arguments. So, I turned to an opposing school of economic thought (the Neo-Keynesian School) and decided to read Joseph E. Stiglitz's "Freefall - Free Markets and the Sinking of the Global Economy". I have just finished reading it. What a lucid and clear-minded exposure of what led up to the problems that culminated in the 2008 financial debacles that have shocked the world! Stiglitz points out rather clearly (for someone who does not think in terms of political economy daily) how damaging the Reagan-Thatcher legacy and the subsequent hands-off, no-regulations policies of U.S. and U.K. (and many other) governments concerning financial markets have been to the world economy. (No wonder Margaret Thatcher gave up studying Chemistry - she couldn't possibly have made a good Chemist!). "Freefall" also discusses what was done by the Bush and Obama administrations to "solve" the misery created by the thieves who called (and most of whom continue to call) themselves "bankers". It took Obama off the mental pedestal I had put him on! Stiglitz suggests solutions to the problems which, not being an economist, I hesitate to judge. They seem rational and, more importantly, address the human misery that financial and political "leaders" (the thieves and their abetters) have created for us. Makes one wonder whether we should not find some other way to finance electoral campaigns in our so-called "democracies". This book should be made compulsory reading for all high school and undergraduate students and I highly recommend it to any literate person who likes to understand the world around him(her)self.
17 of 20 people found the following review helpful
Format:Hardcover
Joseph Stiglitz has made the transition from being at the centre of one of the main institutions of the Washington Consensus, to a principled opponent of these very same institutions, and the current "free" market orthodoxy which still tenaciously holds it grip on economic thinking at the global and national level. In "Freefall" he looks at the current economic debacle, how it happened, its origins, the inadequate response, as well as speculating on what might get us out of this awful mess. His focus is almost wholly on the US experience with only occasional sideway glances at events in Europe and across the globe.
The narrative of the events, and processes, that led to the credit crunch are put before the reader in a concise and comprehensive manner, including the variety of complex financial innovations that contributed to the crash. Stiglitz then looks at the Bush and the Obama administrations, he is fairly scathing about the latter, in particular regarding his economic team, almost all of them have played a part in getting the US economy into its current state. Unsurprisingly he finds their responses to be inadequate, and primarily focused at preserving financial institutions that have failed, and a policy environment that has failed, at the expense of the majority of the US population (he calls the bank rescue program "The Great American Robbery"). Stiglitz appears to favour some sort of bankruptcy proceeding for banks, as well as legislating for a return to the separation of commercial banks from investment banks, amongst other measures.
Next Stiglitz looks at the mortgage industry, particularly the sub-prime segment of it. The details of the practice of this industry in the US (and even in the UK where 42% of mortgages applications are apparently still self-certified) is enough to make the jaw drop of even the most cynical of readers. This is followed with a more general appraisal of Americas position with rising public debt, it's relationship with China, and a still dysfunctional financial sector.
One of the more interesting chapters is Stiglitz look at the rise and failure of the free-market economics: one still awaits its fall or it being reduced to its proper place. Issues highlighted include persistent failure to deal with reality as opposed to the asinine assumptions it makes regarding it, the poor record it has regarding growth, and its failure to improve the circumstances of the American population (US GDP grew by 10% between 2000 and 2008, median household income fell by 4%!). The final chapter "Towards a New Society" steps back from the crisis and looks at how we can begin to move towards a society that works for the majority of the population, rather than one run in the interests of the few.
A stimulating read, that packs a surprising amount of narrative, analysis and thinking into 300 pages. One shortcoming is that despite being fully referenced the book omits an index. I assume this will be rectified when "Freefall" is published in paperback? A book that I would have no problems recommending to anyone interested in how the economic crisis came about, the resulting response, it's roots, as well as some more fundamental thinking on the whole debacle.
The narrative of the events, and processes, that led to the credit crunch are put before the reader in a concise and comprehensive manner, including the variety of complex financial innovations that contributed to the crash. Stiglitz then looks at the Bush and the Obama administrations, he is fairly scathing about the latter, in particular regarding his economic team, almost all of them have played a part in getting the US economy into its current state. Unsurprisingly he finds their responses to be inadequate, and primarily focused at preserving financial institutions that have failed, and a policy environment that has failed, at the expense of the majority of the US population (he calls the bank rescue program "The Great American Robbery"). Stiglitz appears to favour some sort of bankruptcy proceeding for banks, as well as legislating for a return to the separation of commercial banks from investment banks, amongst other measures.
Next Stiglitz looks at the mortgage industry, particularly the sub-prime segment of it. The details of the practice of this industry in the US (and even in the UK where 42% of mortgages applications are apparently still self-certified) is enough to make the jaw drop of even the most cynical of readers. This is followed with a more general appraisal of Americas position with rising public debt, it's relationship with China, and a still dysfunctional financial sector.
One of the more interesting chapters is Stiglitz look at the rise and failure of the free-market economics: one still awaits its fall or it being reduced to its proper place. Issues highlighted include persistent failure to deal with reality as opposed to the asinine assumptions it makes regarding it, the poor record it has regarding growth, and its failure to improve the circumstances of the American population (US GDP grew by 10% between 2000 and 2008, median household income fell by 4%!). The final chapter "Towards a New Society" steps back from the crisis and looks at how we can begin to move towards a society that works for the majority of the population, rather than one run in the interests of the few.
A stimulating read, that packs a surprising amount of narrative, analysis and thinking into 300 pages. One shortcoming is that despite being fully referenced the book omits an index. I assume this will be rectified when "Freefall" is published in paperback? A book that I would have no problems recommending to anyone interested in how the economic crisis came about, the resulting response, it's roots, as well as some more fundamental thinking on the whole debacle.
Most Recent Customer Reviews
counter-free-market
Extremely refreshing : I was afraid there would be only one economy theory left. The problem is now how to get to a different organisation and set of values !
Published 3 months ago by laurent debenedetti
A great book to understand the financial crisis
A great book, Stiglitz puts it in simple terms and make it possible for everybody to understand the financial crisis and the crisis of capitalism we are experiencing.
Published 6 months ago by Bigasmoon
Mandatory Reading For Conservatives Everywhere
Joseph Stiglitz's finest popular book puts the nails in the coffins of 'self correcting markets' and 'all government intervention is bad' forever. Read more
Published 8 months ago by The Outsider
Economic Insight
Excellent and lucid account of modern day world economics and how ill considered political influences have almost brought the world to its knees !
Published 8 months ago by izzy
So nearly a great book
This book has a great book within it, but to get there you have to try not to wince too much when Joseph Stiglitz wanders away from his area of expertise and into politics,... Read more
Published 8 months ago by Suffolk Cyclist
Always brilliant
Stiglitz is always brilliant, and this title is better than his other recent works. Of course dealing with a crisis of this magnitude enables an author like Stiglitz to forcefully... Read more
Published 13 months ago by Ioannis Glinavos
Corporate welfare: socialism, U.S. style
Joseph Stiglitz's Freefall nails the root causes of the financial collapse of 2008 better than any other book on the subject. Read more
Published 14 months ago by Mr. Tristan Martin
critical review of American economy by an economist with human heart
This book is about dissecting the cause of the Great Recession in 2008 and critically assessing measures to tackle the Recession under the Bush and Obama administration. Read more
Published 15 months ago by Jonah
Marmite economics
Joe Stiglitz is like Marmite: either you love him or you hate him.
As it happens, I love him (and Marmite!). Many other won't. Read more
As it happens, I love him (and Marmite!). Many other won't. Read more
Published 15 months ago by P Newall
Everything You Need to Know about the Sub Prime Crash
The author writes in an extremely engaging style and describes perfectly the story behind the sub prime mortage crash and the solutions. Read more
Published 15 months ago by T. Young
Customer Discussions
|
This product's forum
Search Customer Discussions
|
![[Start the discussion]](http://g-ecx.images-amazon.com/images/G/02/x-locale/communities/discussion_boards/start-new-discussion-sec._V192198663_.gif){kind=small}
Listmania!
|
|
Look for similar items by category
Look for similar items by subject
Feedback
- Would you like to update product info or give feedback on images?
- I am the Author, and I want to comment on my book.
- I am the Publisher, and I want to comment on this book.
|
