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The Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash
 
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The Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash (Paperback)

by Morris (Author), Charles R (Author)
5.0 out of 5 stars See all reviews (1 customer review)
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The Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash + When Markets Collide: Investment Strategies for the Age of Global Economic Change + The Ascent of Money: A Financial History of the World
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Product details

  • Paperback: 214 pages
  • Publisher: Public Affairs Ltd (16 Oct 2008)
  • Language English
  • ISBN-10: 1586487507
  • ISBN-13: 978-1586487508
  • Product Dimensions: 21.2 x 13.6 x 2 cm
  • Average Customer Review: 5.0 out of 5 stars See all reviews (1 customer review)
  • Amazon.co.uk Sales Rank: 214,869 in Books (See Bestsellers in Books)
  • See Complete Table of Contents

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Product Description

Review
The first big book on the credit crunch saw the crisis coming three years ago (The Trillion Dollar Meltdown) is...a well-aimed opening shot in a debate that will only grow louder in coming months. --Economist

Charles Morris's The Trillion Dollar Meltdown has many excellent qualities besides brevity. In fewer than 200 pages, Morris provides a comprehensive and jargon-free description of the hideously complex financial securities that have brought the credit system to collapse. --Sunday Times

Both thought-provoking for experts, and a readable primer on events for the layperson --Financial Times

Product Description
With the housing markets unravelling daily and distress signals flying throughout the rest of the economy, there is little doubt that we are facing a fierce recession. In crisp, gripping prose, Charles R. Morris shows how get got into this mess. He explains the arcane financial instruments, the chicanery, the policy mis-judgments, the dogmas, and the delusions that created the greatest credit bubble in world history. Paul Volcker slew the inflation dragon in the early 1980s, and set the stage for the high performance economy of the 1980s and 1990s. But Wall Street s prosperity soon tilted into gross excess. The astronomical leverage at major banks and their hedge fund and private equity clients led to massive disruption in global markets. A quarter century of free-market zealotry that extolled asset stripping, abusive lending, and hedge fund secrecy will go down in flames with it. Continued denial and concealment could cause the crisis to stretch out for years, but financial and government leaders are still downplaying the problem. The required restructuring will be at least as painful as the very difficult period of 1979 1983. The Trillion-Dollar Meltdown is indispensable to understanding how the world economy has been put on the brink.

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4 of 4 people found the following review helpful:
5.0 out of 5 stars Excellent study of unnecessary crash, 12 Dec 2008
By William Podmore (London United Kingdom) - See all my reviews
(TOP 100 REVIEWER)    (REAL NAME)   


Charles Morris, an American writer, lawyer and former banker, has written a useful account of the long-building credit crash.

The last three decades saw the most reckless speculation ever, and the greatest global real estate bubble. By 2005, global financial assets  stocks, bonds, loans and mortgages  were worth four times global GDP. Financial derivatives  a form of claim on these financial assets  had a notional value of ten times global GDP, about $500 trillion.

Morris warns that the write-downs and defaults will take a trillion dollars, but due to capitalisms chaotic nature could cost two or three times more. The crash is in every kind of financial asset: there are no firebreaks. Thatcherisms free-market mania for asset stripping, abusive lending, and hedge fund secrecy has ended in ruin.

The USAs accumulated deficit between 2000 and 2006 was $4 trillion, funded by foreign countries, companies and banks. So now all the surplus nations  Russia, China, Japan, the Middle East countries  are moving away from the dollar and, like the pound, it is now in freefall, causing what the Economist called the biggest default in history.

The US and British governments are turning a debacle into a decades-long disaster, backing their financial capitalists and covering up their problems (hedge funds, like tax havens, do not disclose their balance sheets). Likewise, when Japans credit and property bubbles burst in the early 1990s, its ruling class defended Japans financial capitalists, producing a slump that has not yet ended.

Morris urges a bigger public health care sector and a re-regulation of finance, which would be a start. He concludes, market dogmatism  has become the problem, rather than the solution. And he urges us to end what Adam Smith called the disposition to admire, and almost to worship, the rich and powerful  the great and most universal cause of the corruption of our moral sentiments.
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