3 of 4 people found the following review helpful
Fascinating insight that reveals a fundamental flaw in economic thinking,
This review is from: The Age of Turbulence: Adventures in a New World (Hardcover)
The first part of the book takes you through Greenspan's working life and reminds us that financial crises occur rather frequently and although circumstances change two factors appear to be constant: the greed of the financial community and their sheep like behaviour in following others into, for example, SE Asia prompting the financial crisis there in the 90's or high tech stock driving the dot.com bubble. No surprise then that the current crisis (a level 5 crisis according to the definition provided early in this book) is a consequence of reckless pursuit of high risk investment.
In the second part of the book Greenspan shares his thoughts on economic theory across a range of subjects (and in doing so loses some of the writing fluency from the first part as too much technical jargon is employed - losing a star in the process!). In this section he reveals, unwittingly, a fundamental flaw in his economic thinking. Greenspan's view is regulation needs to be minimised to allow markets to grow most effectively and that control in the market will come from self interest. The fundamental flaw is the self interest of the CEO, who sets the strategy for a company, is not necessarily the same as the self interest of the company i.e. the CEO gets rich while the company goes bust (RBS...!).
Overall a great read - full of stacks of relevant and valuable information.