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Posted December 20, 1999
An exploration of the cycle of financial crises.
In this book Charles R. Morris examines the causes of financial growth of the U. S. economy since 1800 and explains how, as the economy expanded, a financial system developed to facilitate industrialization, trade and further economic development. The author offers interesting observations on recent crises such as, the junk bonds of the l980s, the S&L bank failures, the introduction of derivatives, and in the l990s, the embarrassing rescue of Long Term Capital Management, foreign speculation and the collapse of Asian economies. The book concludes with Morris's reflections on the need for vigorous regulation of the financial markets and explains how the regulators must 'sweep-up the broken glass' after each crisis. He is optimistic that eventually the financial system will respond again to a new round of demographic, economic and technological change. As early investors accrue huge profits on new innovations, imitators follow pushing the system to its limits, then another crisis follows and the late comers take the losses.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.