Michael Lewis is arguably one of the most prolific financial authors of the millennium. If his name sounds vaguely familiar, that’s because he has also written The Big Short and Moneyball. Yes, both of which were turned into major motion pictures by Hollywood. His style tends to paint a picture with memorable dialogue and near-outrageous instances of greed that captures the reader and draws them in until the very last page.
In Boomerang, Lewis delves into the first global financial crisis of the 21st Century by taking a step backward. He explores the steps that individual nations took during the years that led up to the eventual downturn in order to provide a more detailed explanation. I say first as recessions are unavoidable events that occur in a cycle when an economy experiences an extended period of downturn. These economic declines are generally shown by a consistent drop in Gross Domestic Product and can be made worse by bad financial choices and deregulation. However, what makes the recession of 2008 so prolific is the massive wave of cheap credit that encompassed the globe. Cheap credit combined with the lowered financial regulations in the United States led to the perfect storm that engulfed the nation. Lewis also focuses on several European nations and explores how they handled their individual market bubbles. Michael Lewis explores the economic debacles within Greece, Ireland, and Iceland to explain how culture and gender dynamics play a massive role in trading styles and financial perspectives.
Overall, the book observes a tidal wave of economic disaster as it washes ashore to various nations that struggle with their own unfounded financial expectations within their individual markets. Basically, the title of Lewis’s novel sums up what happens when global powers loosen rules and allow access to cheap credit without any foundation in economic reality… it comes back to bite the global powers and their economic partners.
In conclusion, this book is an excellent read that I found fascinating and well written enough for financial beginners and professionals alike. I rate this book 4.5 out of 5 stars for its excellent organization of information and punchy tone.
Top 3 thoughts I had after reading:
1. Greed is universal and tempts both financial stars and normal civilians alike.
2. Learning from past economic bubbles like those specific to Iceland, Greece, and Ireland can help explain the present and predict the future.
3. The global financial markets are heavily interconnected, but incidents in each nation can and will threaten the stability of the individual nations that can grow worse when combined by a global downturn.
BONUS: Without accountability, past financial mistakes are bound to reoccur.
Written By: Camille Cabrera
コメント