Whoops! by John Lanchester

[willoyd]

This is a copy of the review in my reading blog thread, but as it's non-fiction, which always seems to have a far lower profile here, I thought it would be worth adding to the pages:

 

I've had this book on my To Read shelf for a while, but was kicked into actually reading it by a discussion in the staffroom the other day, when I realised I really didn't understand how things had got to such a pass economically lately, and that I wanted to (not least because everybody was vague about the causes)! This is a highly readable, clearly explained, wittily written account of how the 'credit crunch' happened, and why we are in the mess we're currently in. I could have read it in one sitting, except for the fact that there was a lot to get my head round, and I needed time to do so. I still do - this is one book that deserves instant rereading, especially having tried to explain the line that the author takes to my OH, and learned that, whilst I had a decent grasp on the outline, there was still detail that I wanted to fill in (that is there, but I hadn't recalled it properly). Nothing like trying to explain something to somebody else to make sure you've understood things yourself!

 

A few reviewers have commented that Lanchester is too simplistic. Well, he might be, although the weight of reviews is heavily in his favour and most of these comments seem to come from the very financial types and attitudes which got us into this mess, but I'm not so sure. Anyway, it's encouraged me to dive in a bit further, and I intend to try out something like Gillian Tett's "Fools' Gold" in the not too distant future. In the meantime, I came across the phrase 'credit default swap' in the paper today, and realised that I actually understood what the writer was talking about, rather than doing my usual glazing over, so I must have learned something! For anybody with even a vague interest in understanding what is happening in the world, and with only a layman's understanding of business finance (I.e. not much!), I can thoroughly recommend this. I just wish now that I was clearer on how it all links in with the current Euro crisis (I think I get it, but am not sure), which, interestingly, Lanchester says in his 2009 written book is likely to be the next crisis.

Edited December 3, 2011 by willoyd