The Road to Financial Reformation: Warnings, Consequences, Reforms

by Henry Kaufman; Foreword by: Niall Ferguson

• ISBN13: 9780470539934
• ISBN10: 0470539933
• Format: eBook
• Copyright: 2009-07-01
• Publisher: Wiley

Summary

Our financial crisis: what happened, how we got here, and what needs to be doneHenry Kaufman-an esteemed economist and statesman-is one of the most preeminent financial figures of the day, with a history of success from the 1980s, when his firm, Salomon Brothers, ruled the bond markets.In The Road to Financial Reformation, Dr. Kaufman, who has spent a lifetime entrenched in the world of finance, provides an insightful account of the history and impact of post-World War II financial markets on the economy-what happened, how we got to where we are today, and what needs to be done. Drawing on his vast breadth of knowledge and experience, Kaufman reveals the mistakes that got us into this debacle, the consequences-as they have not been fully realized-and how to put our derailed economy back on track. This book details Dr. Kaufman's warnings and concerns expressed repeatedly throughout the last quarter century, and shows that what he predicted came to pass. Provides an insightful account of the history and impact of post-World War II financial markets on the economy Explores the erosion of credit ratings on corporate debt in the late 1980s and the rapid increase in financial concentration of institutions Discusses the blinding faith in models that rely on historical data but fail to take into account economic and financial market structural changesWith his breadth of knowledge and experience, Kaufman details that this crisis was foreseeable (he saw it coming), and how we created this history-making financial crisis. He also explains the consequences still to come, and presents solutions on how we can recover and reform the markets.

Table of Contents

Foreword by Niall Ferguson

Acknowledgments

Introduction

In Perspective

Past Blunders and Future Choices

Reflections on Business, the Lessons of History, and Globalization

If Adam Smith Were Alive Today

Neglected Early Warnings

Troubling Trends in Financial Markets and Official Policies

Debt: The Threat to Economic and Financial Stability

The Decapitalization of American Corporations

Shortcomings in Financial Oversight

The Bigness Dilemma

From Financial Segmentation to Concentration

Financial Concentration in Economic Thought

Do We Still Need Glass-Steagall?

Banking and Commerce Should Not Merge

Financial Crises

Postwar Financial Crises, 1966-2001

The Great Financial Crisis of 2007-2009

Policy Failures And Reforms

Public Policy and the Markets

The Perils of Monetary Gradualism

The Fed and the Governance of Financial Institutions

Transparency and the Fed

Prospects

Prospects for Interest Rates

The Financial Consequences of the Credit Crisis

Selected Bibliography

About the Author

Index

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