Monday, December 31, 2012

Freefall: America, Free Markets, and the Sinking of the Economy by Joseph Stiglitz

I took my very sweet time reading this one, and I am not sure why since it drew some amazing conclusions. Stiglitz summarizes in this book what occurred when the housing bubble burst in 2008 and the incidences leading up to its event (since certain legislation was repealed 10 years prior to the bust). He discusses the irony of why when a financial crisis happens in a third world country, Americans tell them that they need to go the austerity and regulation route, while when it happens in America, a different medicine is used. The most interesting part, to me, was when Stiglitz posits that when this dichotomy occurs, maybe when the time comes, third world countries will reject democracy based on what they experienced compared to what Americans did to deal with market failure. I found that to be an extremely interesting concept.

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