Fault Lines

  • by Raghuram Rajan
  • Narrated by Richard Davidson
  • 13 hrs and 2 mins
  • Unabridged Audiobook

Publisher's Summary

Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
Rajan explains how the individual choices that collectively brought about the economic meltdown - made by bankers, government officials, and ordinary homeowners - were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the U.S. financial sector, with its skewed incentives, is the critical but unstable link between an overstimulated America and an underconsuming world.
In Fault Lines, Rajan demonstrates how unequal access to education and health care in the United States puts us all in deeper financial peril, even as the economic choices of countries like Germany, Japan, and China place an undue burden on America to get its policies right. He outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity.

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Customer Reviews

Most Helpful

Good, but to complex for a wide recommendation

Although this book is well constructed, written, and read, it is far too complex for me to give it a high rating. I have read other books about the financial crisis and have a reasonable understanding of economics. I think to get full enjoyment out of this book a very high understanding of macro economics is needed because the ideas and theories are highly advanced.

This may be a contributing factor to why very few of the recommendations suggested here are being implemented by policymakers.

But I definitely will be reading this book again, even though I can't give it an open recommendation. If you have a reasonable level of economics understanding in advance plus a basic understanding of the 2008 financial collapse then this would be a good book for you.
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- Mr. R. D. Cox

Book Details

  • Release Date: 24-09-2010
  • Publisher: Audible Studios