Tag: Henry Paulson

Econogal’s Top Ten Favorite Books of 2019

 

Compiling the list for Econogal’s Top Ten Favorite Books of 2019 is proving quite difficult. One reason is the number of books read. Over the past 12 months, a book read and reviewed each week was the goal. A few weeks I read more, but that was offset by a stray week here and there where nothing was reviewed. And one week where nothing was even read.

Furthermore, if I use the same format as Econogal’s Top Ten Favorite Books of 2018 (Click here to read.) I need five fictional entries and five books in the non-fiction category. Herein lies the problem. I am short in the non-fiction category of books I care to recommend. But, the number of books for the fiction side is too numerous.

Statistical Favorites

Bloggers have many tools at their disposal to analyze the posts they publish. The backside of a website is quite complex, but also useful. Basic analytics include the number of times a post is accessed. The book with the greatest number of clicks is The Only Woman in the Room, a fictionalized account of the life of Hedy Lamarr. Heads You Win was a close second. I enjoyed both and both are on my list, but not at the top.

Debut Novels

I love discovering new authors. So each year I look for debut writings. Quite a few caught my attention in 2019. Allison Schrager’s An Economist Walks into a Brothel leads the way in the non-fiction category. The fictional counterpart listed in Econogal’s Top Ten Favorite Books of 2019 is Disappearing Earth which is the debut work of Julia Phillips.

Other outstanding new voices include Lydia Fitzpatrick with Lights All Night Long, and Maura Roosevelt’s Baby of the Family. Each provide food for thought while entertaining the reader. I highly recommend both.

Almost There

I have six titles that were in contention to make Econogal’s Top Ten Favorite Books of 2019. Each is worth the read. Look for them at your nearest library or book store. In no particular order: Last Woman Standing, Break Point, The Break Down, The Last Second, The Black Ascot and Only Killers and Thieves.

Since I am short on the non-fiction list, I offer one combined list. The designation follows the title. As with last year’s list, Econogal’s Top Ten Favorite Books of 2019 reviews can be accessed by clicking on the title.

 

Top Ten List

 

Disappearing Earth by Julia Phillips                                                       Fiction

Lights All Night Long by Lydia Fitzpatrick                                            Fiction

An Economist Walks Into a Brothel by Allison Schrager                    Non-Fiction

Things You Save in a Fire by Katherine Center                                     Fiction

Heads You Win by Jeffrey Archer                                                             Fiction

Baby of the Family by Maura Roosevelt                                                  Fiction

The World That We Knew by Alice Hoffman                                                  Fiction

Don’t Stop Believin’ by Jonathan Cain                                                     Non-Fiction

The Only Woman in the Room by Marie Benedict                                 Fiction

Firefighting: The Financial Crisis And Its Lessons by Bernanke, Geithner and Paulson, Jr.    Non-Fiction

Firefighting: The Financial Crisis And Its Lessons Book Review

Firefighting: The Financial Crisis And Its Lessons is the three person account of The Great Recession and the steps taken to repair the economy. The individuals credited with writing the book are Ben S. Bernanke, Timothy F. Geithner and Henry M. Paulson. The information presented is straightforward. One of the best aspects is the use of the firefighting metaphor to explain the steps taken at the time to mitigate the panic. Furthermore, my own memory of the tumultuous time meshes with the writing. So, the information rings as fact more than opinion.

A Keynesian Approach

Those of you with an economic background can differentiate between a Classical and a Keynesian approach to economic policy. For those of you unfamiliar with the theory, click here for a tutorial. The steps taken during the financial crisis of the Ought’s clearly represent the teachings of John Maynard Keynes. The Federal Reserve led by Bernanke, and the Treasury Department, first shepherded by Paulson during the Bush Administration then spearheaded by Geithner under President Obama, went to great lengths to stop the downward spiral of the economy. Firefighting takes you step by step through the interventions.

I appreciate the book for what I perceive is an honest portrayal of the cause and effect of the crisis. The authors go to great length to posit why some firms survived while others folded.  Since I vividly remember public events as well as personal anecdotes from the time, I feel quite comfortable highly recommending the book.

Firefighting Lessons

In addition to relating the fiscal and monetary steps taken to fight The Great Recession, Firefighting puts forth warnings for the future. The authors have two key concerns. First, the three former public servants are concerned with a loss of power for both the Treasury Department and Federal Reserve. They make a good case for the immediate ability by the agencies to react to future crises.

Second, the authors are duly concerned with the functionality of Keynesian economics. Government intervention in times of crisis is only one-half of the economic theory. Keynesian economics also calls for replenishing the coffers during expansions. This is not occurring. Instead of bringing the deficit down, our debt levels are increasing. Thus, the authors believe, both monetary and fiscal policy will be hampered in firefighting the next economic downturn.

The argument between interference and non-interference in the markets is central to economic philosophy. The debate between the Classical school of thought and the Keynesian Theory is reflected today in our divided politics. I encourage all to read Firefighting including members of Congress.

One of my favorite websites to share with new students of economics is the US Debt Clock. Visiting this site is eye opening. Similarly, Firefighting will also open eyes. For example, the book acknowledges the public relations nightmare of propping up AIG.

Personally, I saw and was offended by the lavish expenditures of AIG during the height of the meltdown. But I did not know the flip side until reading Firefighting. Grudgingly, I admit the intervention was necessary. Thus my appreciation of the work of Bernanke, Geithner, and Paulson. Both for the book and their many sleepless nights a decade ago.