Tuesday, April 13, 2010

The Return of Depression Economics

Another must-read.  Okay, I told you about Andrew Sorkin's book, Too Big To Fail, the minute-by-minute Wall Street thriller soon to be made into a movie.  Now I'm going to recommend the best account I have found of what happened in '08 from a purely analytical standpoint.  The Return of Depression Economics and the Crisis of 2008 by economist Paul Krugman of Princeton University is without a doubt the best account of the origins, mechanisms, and ongoing consequences of the present financial crisis in layman's language that I have been able to find (and I read a lot of this stuff).  His very sobering assessment is that we're not out of the woods yet, by a long way.  (And for that he is regularly castigated in the right wing press, of course.)  Highly readable, a fifth of the size of Sorkin's book (and half the cost) it is highly recommended by The Balf's Bookshelf.  If you want to know what happened - and what we could be up against over the next decade - this is a great place to start.  If Krugman's right, fasten your seatbelt and don't quit your day job.