What is that old adage? How can you tell a downturn in the economy—someone across town loses their job. In a recession—your neighbor loses his job. In a depression—you lose your job. Or something like that.
Over the past few years many people lost their jobs, their homes and
some their businesses. Many are still upside down on their mortgages. We call
this period the GREAT RECESSION only because there are many safety nets that
have been placed into effect since THE GREAT DEPRESSION, but the pain is still
For those who want to have a better understanding of how we avoided the
SECOND GREAT DEPRESSION, read former Secretary of the Treasury, Timothy F
Geithner’s new book entitled STRESS TEST© (2014).
I am about half way through the book, but I could hardly put it down and
felt compelled to get people reading. I know there are a number of doomsday books that have come out. But this is
an insider’s view of our financial system and how it was spiraling down out of
control and how the government and private sector responded to the crisis, both
positively and negatively.
Just as Hoover was blamed for THE GREAT DEPRESSION which was seeded
prior to taking office, Obama came into the presidency with THE GREAT RECESSION
already in progress.
Tim walks you through the buildup of the recession, Bear Stearns bailout, Lehman Brothers default, Fannie Mae and Freddie Mac takeover, AIG rescue through TARP in 2013. He discusses various parties to the actions and events: himself, Alan Greenspan, Ben Bernanke, Hank Greenberg, Barney Frank, Henry Paulson, JPMorgan, Morgan Stanley, Merrill Lynch, Citi, Wachovia, and many more. He points out the flaws and failing of risk management in the biggest financial companies.
Yes, some investors, bankers and such benefited from the Federal
Reserve, Treasury Department and Congressional actions, but I like the jest of
Tim’s book: Do you try to put out the fire or let the whole neighborhood burn
down to punish the smoker in bed who started the fire. I think a lot of people
do not realize how close we came to total melt down of the financial system
both domestically and internationally. Had the US financial system completely
collapsed as it did during THE GREAT DEPRESSION any recovery would have taken
many more years than it has.
Don’t walk, run to your computer and order the book from AMAZON or your
local bookstore. When I went to Barnes and Noble to buy the book in large
print, the clerk told me I could get the book for nearly ½ price. Paid2Save.com (code 6728460) buy-2-get-3rd-free-barnes-and-noble-classics until 10-25-14 get the book for $20.34 or Nook $14.99.
I think most people agree that the economy is generally looking better.
I don’t think we are completely out of the red as yet, but we are at least
moving in the right direction.
Your success in real estate industry will be improved if you understand
the relationship between the housing crash and our recent housing surge. Read
(Disclosure: I do benefit if you order through Paid2Save with my code, but don't let that stop you from getting the book somehow. It is worth every penny. For investment funding text the following message: "FUNDING" to 41411)