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Whoops!: Why Everyone Owes Everyone and No One Can Pay Paperback – 7 Oct. 2010

4.3 out of 5 stars 495 ratings

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John Lanchester's Whoops! Why Everyone Owes Everyone and No One Can Pay is the unbelievable true story of the economic crisis.

We are, to use a technical economic term, screwed. The cowboy capitalists had a party with everyone's money and now we're all paying for it. What went wrong? And will we learn our lesson - or just carry on as before, like celebrating surviving a heart attack with a packet of Rothmans?

John Lanchester travels with a cast of characters - including reckless banksters, snoozing regulators, complacent politicians, predatory lenders, credit-drunk spendthrifts, and innocent bystanders to understand deeply and genuinely what is happening and why we feel the way we do.

'Devastatingly funny ... the route map to the crazed world of contemporary finance we have all been waiting for'
Will Self

'Bang on the money'
Independent

'Explains the crisis in a way that actually sticks ... to my amazement, I finally grasp it'
Janice Turner,
The Times

'Endlessly witty ... will turn any reader into an expert within the space of 200 pages'
Jonathan Coe

'Terrific ... there is no better guide to the crazy world of high finance'
GQ

John Lanchester is a journalist, novelist and winner of the Whitbread First Novel Award. His fiction includes Mr Philips, The Debt to Pleasure and Capital. He is a regular contributor to the London Review of Books and the New Yorker, with a monthly column in Esquire.

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Review

This is what George Bernard Shaw might have called An Intelligent Person's Guide to the Crisis of Modern Capitalism, and everyone ought to read it ― Robert Harris, Sunday Times

Original . . . beautifully written . . . both entertaining and profoundly anger-inducing ―
Chris Blackhurst, Evening Standard

The route map to the crazed world of contemporary finance we have all been waiting for. John Lanchester's superb book is everything its subject - the 2008 crash - was not: namely lucid, beautifully contrived, comprehensible to the reader with no specialist knowledge - and most of all devastatingly funny -- Will Self

Wickedly funny . . . Good humor and good company will be the things that'll get us through ―
Dwight Garner, New York Times

Endlessly witty, but the wit is underpinned by a tremendous, unembarrassed anger and moral lucidity. A superb guide which will turn any reader into an expert within the space of 200 pages. ―
Jonathan Coe

Explains the madness of modern capitalism with razor-sharp insight, brilliant clarity and a refreshing dose of humour. A great book. ―
John O'Farrell

Scarier than Thomas Harris ―
Nicci French

John Lanchester's newfound mission: to explain the world of finance to the general public . . . The result is the perfect read for anyone still wondering what went wrong and why. Unless you'd rather they didn't know ―
Bloomberg

Literary and profound . . . a master explainer with an excellent grasp of sophisticated finance ―
Christopher Caldwell, The Daily Beast

Acidic, frightening, and sharply funny . . . a better book about the global meltdown than any other to date ―
EW.com

[A] sober message lurking among Lanchester's delightful wordplay, and it deserves attention by everyone who cares to understand where we are, how we got here and who is responsible ―
John Lawrence Reynolds, Globe and Mail

This is a piece of genius . . . It tells a proper story, like a novel, and we're all part of it - which means it is *gripping*. Yes! Gripping! A book about money! I know! But it's true. It is necessary, particularly - but not exclusively - if you're somebody who thinks, 'Fannie Mae, Freddie Mac, Iceland, um, mortgages, er...' and doesn't want to keep thinking it until the end of time, amoeba-stylee. I humbly posit that it is a masterpiece ―
India Knight

Lanchester has turned that fascination - coupled with a kind of astonished anger - into a lucid, conversational account of the crisis designed for non-financial types and helpfully leavened with jokes, swearing and interesting asides ―
Quentin Webb, Reuters

An excellent book for anyone wondering what the hell is going on. Triple A, as the credit rating agencies might say ―
Irish Times

Or you could simply borrow the book from someone. If they've read it, even better - they won't be expecting you to return it ―
The Telegraph

For anyone still wondering what the hell those bankers did with our money, try John Lanchester's deliciously escoriating
Whoops! Even someone who can't remember their eight times tables comes away feeling wonderfully well informed -- Allison Pearson ― summer reading recommendation, Psychologies

This account is by far the most lucid and entertaining explanation of the world banking crisis of 2008 -- Megan Walsh ―
summer reading recommendation, Times

A lively lay reader's guide to the financial crisis, written by a novelist who sought to educates himself about banking and its failures. Funny and pointed, it exposes the gulf between the two cultures of modern Britain: financial and non-financial -- Ed Crooks ―
summer reading recommendation, Financial Times

If you want to look like a rock of good sense, a person who is deep and wise and worried, then I suggest
Whoops! by John Lanchester ... If only the Queen Mother were still alive, it would make sense even to her -- Colm Toibin ― summer reading recommendation, Guardian

About the Author

John Lanchester is a journalist, novelist and winner of the Whitbread First Novel Award. He is a regular contributor to the London Review of Books and the New Yorker, with a monthly column in Esquire. John's piece on our love affair with the City, 'Cityphilia', generated much response on its publication in January 2008 and indeed predicted a worldwide crash based on the misuse of financial derivatives. In October 2008 he charted the crisis as it had developed over the year in 'Cityphobia', which also attracted much attention as a piece that explained not only what had happened, but how we felt about it. John was raised in South-East Asia and now lives in London.

Product details

  • Publisher ‏ : ‎ Penguin
  • Publication date ‏ : ‎ 7 Oct. 2010
  • Edition ‏ : ‎ Third Edition
  • Language ‏ : ‎ English
  • Print length ‏ : ‎ 256 pages
  • ISBN-10 ‏ : ‎ 014104571X
  • ISBN-13 ‏ : ‎ 978-0141045719
  • Item weight ‏ : ‎ 191 g
  • Dimensions ‏ : ‎ 12.9 x 1.5 x 19.81 cm
  • Best Sellers Rank: 509,552 in Books (See Top 100 in Books)
  • Customer reviews:
    4.3 out of 5 stars 495 ratings

About the author

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John Lanchester
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John Lanchester is the author of the novels The Debt to Pleasure, Mr. Phillips, and Fragrant Harbor; and a memoir, Family Romance. He is a contributing editor at the London Review of Books and his work has appeared in The New York Times, The New Yorker, The Observer, and The Daily Telegraph, among others. Among several other prizes, including the Whitbread and Hawthornden Awards, Lanchester was awarded the 2008 E.M. Forster Award by the American Academy of Arts and Letters. He lives in London.

Customer reviews

4.3 out of 5 stars
495 global ratings

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Customers say

Customers find the book excellent at explaining complex financial instruments and appreciate its entertaining and easy-to-follow style. The writing is well-structured, and customers find it humorous, with one review noting it's written in a no-nonsense humorous way. The book receives mixed feedback regarding its pacing and finance content.

65 customers mention ‘Explanation quality’60 positive5 negative

Customers find the book excellent at explaining complex financial instruments and events, with one customer noting it provides a solid basis for further reading on the subject.

"...subject chooses to write about it, the result can be entertaining, informative and insightful, as they look at things from a different angle,..." Read more

"fun, engaging, insightful..." Read more

"Excellent read - highly recommended. Complex issues explained in an easy to follow manner" Read more

"...More importantly, I feel that I have a solid basis for further reading on the subject and might even, who knows, one day be able to form my own..." Read more

49 customers mention ‘Readability’44 positive5 negative

Customers find the book engaging and entertaining, with one noting it's not a demanding read.

"Interesting. Informative. Funny. And written in a way that makes sense of the global financial crisis...." Read more

"This is an excellent book on the causes of the recent catastrophic events in the financial services industry...." Read more

"A fascinating and frightening book. It shows how things went so wrong, who was to blame, and what is not being done to put things right...." Read more

"Excellent book that makes the whole sorry mess understandable to the likes of me...." Read more

25 customers mention ‘Ease of understanding’24 positive1 negative

Customers find the book comprehensible and easy to follow, with one customer noting it provides a clear explanation of financial derivatives.

"...Complex issues explained in an easy to follow manner" Read more

"An immensely readable account of the credit crunch by an informed observer rather than a participant with an axe to grind...." Read more

"...Lanchester takes a very complex subject and makes it both brilliantly accessible and, for the most part, highly entertaining...." Read more

"...The last chapter is the best, and can be read as a stand-alone: Lanchester's conclusion is quite simply that the Anglo-Saxon brand of capitalism has..." Read more

16 customers mention ‘Writing style’14 positive2 negative

Customers appreciate the writing style of the book, finding it well and concisely written, with one customer noting it is written for non-professionals.

"...a brilliant journalist and has the gift of being able to write about any subject intelligently, and with great humour...." Read more

"On the plus side, Lanchester writes well and he's done a lot of research...." Read more

"...I am afraid I cannot fully agree. It is evident in his writing style that he fully understands each concept, but he explains too briefly, missing..." Read more

"...It is wittily and engagingly written...." Read more

14 customers mention ‘Humor’12 positive2 negative

Customers appreciate the book's humorous writing style, which is delivered in a no-nonsense manner.

"...of being able to write about any subject intelligently, and with great humour...." Read more

"I am deeply grateful to John Lanchester for this lucid, funny and passionate account of the recent Great Crash...." Read more

"...had to 're-read bits as I have no financial background but it was humourous and informative about a subject that could easily have gone way above my..." Read more

"...It is not dry and I rattled through it at a fair pace. It is witty in places and despite its deadly serious subject matter retains a lightness of..." Read more

8 customers mention ‘Pacing’5 positive3 negative

Customers have mixed opinions about the pacing of the book, with some finding it balanced and well-structured, while others criticize it for being too focused on banker criticism.

"...of the author's wit, as well as the shortest, pithiest summary of the following chapters you'll ever find...." Read more

"...the book is quite astonishingly entertaining but the author's conclusion is both bleak and frightening - a real, effective fix for the banks is..." Read more

"...It is wittily and engagingly written...." Read more

"I am deeply grateful to John Lanchester for this lucid, funny and passionate account of the recent Great Crash...." Read more

6 customers mention ‘Finance’4 positive2 negative

Customers have mixed reactions to the book's financial content, with some appreciating how it explains complex economic concepts, while others find it difficult to understand.

"...This excellent book gives a step by step guide to the philosophical, financial and frankly criminal underpinnings of this momentous event...." Read more

"The crisis for the non-economically savvy..." Read more

"Very readable explanation of the background and causes of the financial crisis...." Read more

"Lancaster paints with words. He is to economics what Banksy is to art. Summary follows...." Read more

Top reviews from United Kingdom

  • Reviewed in the United Kingdom on 7 February 2010
    An immensely readable account of the credit crunch by an informed observer rather than a participant with an axe to grind.

    Nobody could avoid being totally bemused by the shenanigins of the financial institutions who brought about the credit crunch in 2008 - 2009. I certainly could not nor could I grasp the scale - what does $ trillions mean? How do sane bankers provide mortgages to poor people without any security of assets or income and convert them into triple AAA rated loans? And how can these loans be multiplied up to such an extent that they threaten the global financial markets? What are derivatives and why do they now dominate the financial markets? Should Lehman's bank and the US mortgage companies - Fannie Mae and Freddie Mac - have been allowed to fail? Were we right to bail out Northern Rock and rescue our banks whose key expertise is meant to be assessing risk? And why were the credit rating agencies not blowing the whistle on the incompetent bankers - surely that is what they are paid to do?

    Whoops provides a comprehensible and entertaining account of what went wrong. He places the credit crunch in historical context - the collapse of communism in 1989 and the liberalisation of the financial markets especially the Big Bang in the UK and the repeal of regulation in the US. He explains in layman's terms the explosion of derivatives like credit default swaps (CDS's) and collateralised debt obligations (CDO's) and how they rapidly came to dominate the markets. The lack of understanding of their risk by those who ran many banks is absolutely staggering. There were exceptions, notably JP Morgan, who had pretty much invented the CDS and CDO industry and could see how profitable were these instruments, but to whom the risks were apparent and so they avoided them.

    Lanchester writes a very human story. He discusses psychology research which proves that humans, even expert humans, have a particular propensity to errors in relation to risk. In the context of a widespread belief in the power of the free market to correct itself with its arch exponent Alan Greenspan, long time head of the US Federal Reserve, and with the growth of the mathematical modellers basing their work on historical data which did not include major downturns, risk becomes underrated.

    The absence of any regulation by the financial services authorities is, in hindsight, fatal. The entire climate of opinion throughout the world was in favour of laissez faire, deregulation and financial innovation. Even where regulation was supposed to exist, the US's SEC and the UK's FSA were negligent. The SEC was warned about Madoff's long running Ponsi scheme and journalists did foresee the risks building up in the global financial system but "expert overconfidence" ignored them.

    John Lanchester's conclusions are very depressing. Whilst not relating to $ trillions, I can get my head around the projected US deficit being bigger than the Marshall Plan, the Louisiana Purchase, the 1980's Loan crisis, the Korean War, the New Deal, the invasion of Iraq, the Vietnam War, and the moon landing all added together. In the UK relatively we are just as badly off. It is going to take a very long time to pay off this debt off. And John Lanchester is sceptical of the action that will be taken to regulate to prevent future crises.
    167 people found this helpful
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  • Reviewed in the United Kingdom on 1 February 2010
    A more accurate subtitle of this book would be, "How to destroy the economy for dummies". The question which the actual subtitle title raises, namely who owes what to whom and whether it can actually ever be paid off, is not even touched on in this book. What Lanchester does do, as other reviews suggest, is break down the financial crisis we are all still reeling from, in terms that everybody can understand. I haven't studied finance or economics, but I now feel, incredibly, that I could do a fair job of explaining the generalities of the crisis if I were called upon to do so. More importantly, I feel that I have a solid basis for further reading on the subject and might even, who knows, one day be able to form my own opinions. Lanchester is a brilliant journalist and has the gift of being able to write about any subject intelligently, and with great humour. His outsider's perspective on the practices and philosophies leading up to the crash are a tremendous advantage, as he never gets bogged down in dogma or detail. Every single chapter is so admirably explained that an idiot could understand it.
    I do (as usual) have minor quibbles: I scratched my head over "liabilities match assets plus equities" (p25) for a while and wished the book had been proofread by an accountant. More seriously, Lanchester tries to write as simply as possible, but at times one does feel a little patronised, such as on page 160, where he is still referring to investment banks as 'casinos' and commercial banks as 'piggy banks.' Got it, thanks. Or sometimes you feel that he is trying to make up for what he feels may be a dry topic by inserting unnecessarily jocular expressions. The market goes up and down "like a bride's nightie" at one point, or "like a gorilla on a pogo stick" at another; a company director is usually referred to as a 'head honcho', and so on. It can sometimes feel embarrassingly like a relief teacher trying to get down with the kids. Lanchester is an engaging enough writer without these quirks. The other thing that doesn't work for me is the end of the book. After Lanchester explains all the causes of the crisis: the CDOs and CDS's, the toxic assets and risky loans etc., it would have been a natural climax to describe exactly how it all unravelled so dramatically over just a few days. But the author doesn't allow himself this punchline. Instead, the long second-to-last chapter of the book is a critique of the regulatory systems and attitude to risk of the financial sector generally, interspersed with the author's own views, such as how Britain doesn't have a manufacturing based economy anymore, unlike brilliant Germany, and how city people know the price of everything and the value of nothing. I don't necessarily disagree with his views, but I just think they would have been better kept separate from the indisputable facts.
    But don't worry. These flaws are actually very minor. They don't really detract very much from an excellent read, by far the most entertaining and informative thing I've ever read on the subject. If you know nothing about finance and want to know why we are where we are now, then this is the book for you.
    23 people found this helpful
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Top reviews from other countries

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  • William Fritz
    5.0 out of 5 stars A New Clarity on the Great Recession
    Reviewed in the United States on 7 August 2010
    I've been trying to fully understand what happened to our economy in 2007-2008 and into the present. I'm not an economist but an interested amateur (and a history teacher who wants to be accurate). I've read several books on the subject as well as the writings of several online economists. What always bogs me down is what I'll call "street speak"--the use of insider terms that are completely over my head.

    While this book still occasionally leaves me in the dust, the author has done the best job I've seen in aiding this "non-Streeter's" understanding of the events that caused the "Great Recession." Mr. Lanchester uses ordinary examples to explain what happened, which helped me a great deal.

    I'm often told that nobody fully understands what happened or how these extraordinarily complex investment "opportunities" came to exist or what they contain(ed). I believe that, but I'm trying to get to the bottom of the whole pile of delusion: big money investors attempting to "hedge" risk out of existence and creating vehicles that served no useful purchase except to make them rich. And they're still rich.

    If you are interested in some basic information on the genesis of this crisis, then turn to John Lanchester and his book "Whoops!" first.

    It's also mighty interesting that the book, a 2010 UK copyright, is currently unavailable ANYWHERE in the US--at least it was when I ordered my copy.

    And by the way: the book is well written and often (and unexpectedly) humorous.
  • Snapdragon
    5.0 out of 5 stars Excellent look at toxic greed
    Reviewed in Australia on 6 February 2019
    In this well-researched book, John Lanchester examines the causes and consequences of the 2008 financial crash. It’s enough to make you bitter and twisted about the world of Big Money. He lays out the various ways in which financial institutions and governments colluded to create a toxic culture of unalloyed greed. When many institutions in the US and UK were deemed Too Big To Fail, ordinary taxpayers picked up the tab, to the tune of billions upon billions of dollars and pounds. That’s a whole lot of schools, hospitals, police, roads, bridges etc that taxpayers won’t get, because their money is busy supplementing the enormous bonuses bankers awarded themselves directly after the crash, seemingly unaware that ordinary citizens would find this obscene. As Lanchester says, this amounts to socialism for the rich, paid for by the unrich. It’s clear what should be done about it - tighter regulation that’s actually enforced. Sadly, it’s equally clear that that won’t happen. Perhaps we should all move to Canada, which has excellent banking rules and which alone among the G8 had no bank fail.

    Perhaps we should remember that the only recorded instance of Jesus Christ getting angry was when he overturned the tables of the money changers in the temple. “Love of money is the root of all evil.” Not money per se, but the love of it. The imperative, whether religious or not, is not to be rich, but good. Lanchester rightly points the finger at bankers and politicians, but also reminds us that ordinary folk also became caught up in the craze for cash. He mentions too, that John Maynard Keynes opined, during the Great Depression, that Britain would continue to get steadily richer, and that its citizens would stop and reflect with pleasure on their luck in having lifestyles that former kings and queens would have envied. As we now know, the “hedonic treadmill “ ensures that no matter how well off we become, it’s never enough. Time to have a national happiness index, like Bhutan.
  • BowieFan
    5.0 out of 5 stars Compelling book! Explains thoroughly the causes and effects of the 2008/09 global financial crisis
    Reviewed in Canada on 6 September 2020
    This book is also extremely relevant to the financial and social predicaments and challenges that nations are facing due to the 2020 global pandemic.
    It is extremely well-written, thorough and readable, even for people like me that are not financial or economic wizards. Despite its often poignant content, it is an extremely entertaining and engaging read. It provides many 'real-world', understandable examples and explanations of the causes, effects and long-lasting aftermath of the 2008/09 financial meltdown.
    I highly recommend this absolute gem of a book.
  • wendywoo
    5.0 out of 5 stars Enlightening and recommended
    Reviewed in Germany on 8 August 2022
    I liked this book because it tried to explain the very complicated world of global finance. I sometimes had to read parts twice, as financial vocabulary sets itself apart from normal usage.
    It showed how banks have immense power (not just in present times but have in the past too) and how people at the tope influence politics and make life for ordinary workers hell sometimes with no conscience about wrongdoing when they make the wrong decisions. It also gave me the impression that a lot of people in this 'world of fast money', often don't know what they are doing, or have calculated the consequences of how things can easily go wrong properly.
    I wish Mr Lanchester suggested where best to store ordinary people's savings, because it is frightening how little choice we all have. Banks used to be respected and a place you could trust to place your money. Nowadays you can only pray to the gods that the few rules and regulations that have been introduced since the last financial crisis will help to stop ordinary people taking stupid risks that enable banks to have money (your money) to play roulette with.
    I came to the conclusion there is no safe place. Property prices go up and down, stocks and shares swoop up (if you are extremely lucky) or down (which brings little return in the end), your savings book earns very little interest, and if you keep your under your mattress it might turn out to be worthless too. Your pension money promised by companies dissolve into thin air when the people at the top help themselves to it, when they need to save their own skins. The number of rich directors, speculators, money makers at the top who get decorations, awards, and prominent positions in society, is depressing. Ordinary folk work their whole lives in the hope of having a decent life and a comfortable old-age. Merciless, disgusting crooks in banking and finance take advantage and do their best to kill people's dreams.
    A good book that I read with a lot of interest and pleasure. At least I will now understand some of the vocabulary my bank adviser uses if I ever need to talk to him about where to store my hard-earned surplus.
  • Jean Marcus dos Santos e Silva
    4.0 out of 5 stars Perspectiva de um não economista
    Reviewed in Brazil on 28 July 2015
    O entendimento de narrativa de John Lanchester ajuda explicar o descontrole da industria financeira em sua busca por lucros e apenas lucros sem rogar julgamentos desnecessários.
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