Download House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It From Happening Again AudioBook Free
The Great North american Recession resulted in the loss of eight million jobs between 2007 and 2009. A lot more than four million homes were lost to foreclosures. Is it a coincidence that america witnessed a dramatic rise in household credit debt in the years before the recession - that the quantity of credit debt for American homes doubled between 2000 and 2007 to $14 trillion? Definitely not. Armed with clear and powerful facts, Atif Mian and Amir Sufi reveal in House of Credit debt the way the Great Downturn and Great Unhappiness, as well as the existing economic malaise in European countries, were brought on by a sizable run-up in household debt followed by a significantly large drop in household spending. Though the banking problems captured the public's attention, Mian and Sufi claim strongly with actual data that current policy is too intensely biased toward safeguarding banks and creditors. Increasing the movement of credit, they show, is disastrously counterproductive when the essential problem is too much credit debt. As their research shows, excessive household debt contributes to foreclosures, creating individuals to spend less and save more. Less spending means less demand for goods, followed by declines in production and huge job deficits. Just how do we end such a routine? With a direct attack on credit debt, say Mian and Sufi. More intense debt forgiveness following the crash helps, but as they illustrate, we can be rid of painful bubble-and-bust shows only when the financial system moves away from its reliance on inflexible credit debt contracts. For example, they propose new home loan contracts that are built on the principle of risk-sharing, a thought that would have avoided the enclosure bubble from growing to begin with. Thoroughly grounded in persuasive economic facts, House of Credit debt offers convincing answers to some of the main questions facing the present day overall economy today: Why do severe recessions happen?
