Financial Shock (Updated Edition), (Paperback)

Financial Times
Mark Zandi  
Total pages
April 2009
Related Titles

Product detail

Product Price CHF Available  
Financial Shock (Updated Edition), (Paperback)
30.70 approx. 7-9 days


The subprime crisis and the global financial panic it triggered will impact every one of us profoundly, for years, and perhaps even decades. What happened? And how can we prevent it from happening again? In Financial Shock, Revised and Expanded Edition, Dr. Mark Zandi answers these questions: thoroughly, carefully, and in plain English. This new edition has been systematically updated for the latest events, with insights into the dynamics of the worldwide Fall 2008 financial collapse, the freezing of credit markets, the extraordinary actions governments have taken in response, and the massive economic fallout. Zandi begins with a fast-paced "history" of the crisis: where it started, how it spread, and the damage it has caused. Next, he illuminates its deepest causes, ranging from the psychology of homeownership to Alan Greenspan's missteps, Internet technology to state-of-the-art financial engineering. After surveying the wreckage, Zandi previews the radically different financial system that is likely to emerge next, and offers more detailed and specific recommendations for policymakers and regulators. Along the way, readers will gain indispensable insights for protecting their own futures, managing their own investments, and navigating their organizations to safety.


Bestselling book on the financial crisis completely updated, with more specific policy recommendations and remedies


  • Now with more coverage of the government bailouts, the future of the economy and financial markets, and how the average household will be affected.
  • New expanded discussion of the most important steps needed to most effectively fix the underlying problems.
  • Specific lessons for homeowners and investors, including a discussion of the future of American finance.
  • New to this Edition

    New edition is completely updated, with more specific policy recommendations and remedies.

    Table of Contents

    Acknowledgments . . . viii

    About the Author . . . ix

    Introduction . . . 1

    Chapter 1: Subprime Précis . . . 9

    Chapter 2: Sizing Up Subprime . . . 33

    Chapter 3: Everyone Should Own a Home . . . 49

    Chapter 4: Chairman Greenspan Counts on Housing . . . 67

    Chapter 5: Global Money Men Want a Piece . . . 81

    Chapter 6: Bad Lenders Drive Out the Good . . . 97

    Chapter 7: Financial Engineers and Their Creations . . . 113

    Chapter 8: Home Builders Run Aground . . . 131

    Chapter 9: As the Regulatory Cycle Turns . . . 145

    Chapter 10: Boom, Bubble, Bust, and Crash . . . 161

    Chapter 11: Credit Crunch . . . 175

    Chapter 12: Timid Policymakers Turn Bold . . . 193

    Chapter 13: Economic Fallout . . . 233

    Chapter 14: Back to the Future . . . 251

    Endnotes . . . 273

    Index . . . 285

    Back Cover

    "In Financial Shock, Mr. Zandi provides a concise and lucid account of the economic, political, and regulatory forces behind this binge."

    -The Wall Street Journal


    “The obvious place to start is the financial crisis, and the clearest guide to it that I've read is Financial Shock by Mark Zandi....It is an impressively lucid guide to the big issues.”

    - David Leonhardt, The New York Times


    “If you wonder how it could be possible for a subprime mortgage loan to bring the global financial system and the U.S. economy to its knees, you should read this book. No one is better qualified to provide this insight and advice than Mark Zandi.”

    - Larry Kudlow, Host, CNBC's Kudlow & Company


    “Mark Zandi provides insightful analysis, thoughtful recommendations, and a comprehensible explanation of the financial crisis that is accessible to the general public and extremely useful to those who specialize in the area.”

    - Barney Frank, Chairman, House Financial Services Committee


    The Definitive Financial Meltdown Exposé:

    Now completely updated to include discussions of the Obama administration's many policy initiatives and proposed solutions.

    •Includes expanded coverage of the market meltdown, the bailout bill and stimulus plans, the bank rescue plan, and the foreclosure mitigation plan

    • Sifting the wreckage, fixing the blame: the roles of mortgage lenders, investment bankers, speculators, the real estate industry, regulators, the Fed, and homebuyers

    • Tomorrow's emerging financial shocks-and how to prevent them


    Dr. Mark Zandi is chief economist and cofounder of Moody's, an independent subsidiary of Moody's that provides economic research and consulting services to businesses, governments, and other institutions. His recent research has included studying determinants of mortgage foreclosure and personal bankruptcy; analyzing economic impacts of tax and government spending policies; and assessing policy responses to bubbles in asset markets. He has appeared on NBC's Meet the Press, NBC News, CBS News, CNN, CNBC, and has served as an economic advisor to John McCain's presidential campaign and the Obama administration. Zandi holds a Ph.D. from the University of Pennsylvania where he did research with Gerard Adams and Nobel Laureate Lawrence Klein.