My interests run to psychology, popular science, history, world literature, and occasionally something fun like Jasper Fforde. It seems like the only free time I have for reading these days is when I'm in the car so I am extremely grateful for audio books. I started off reading just the contemporary stuff that I was determined not to clutter up my already stuffed bookcases with. And now audio is probably 90% of my "reading" matter.
Too many history books give short shrift to the role of finances on the course of history. This book fills in a major plot hole about what went on between the two world wars. Ahamed does a great job of giving us a play-by-play of how the major central banks attempted to respond to events, including a clear picture of how the decision making process was affected by individual personalities and legacy dogma from the past. I wish the author had interspersed more of his analysis with the main text instead of saving it for the end. Ahamed builds a strong case that the gold standard was a key factor leading to dysfunctional decisions. As far as building a case that these bankers bungled their jobs, he would do better if he could come up with decisions that would have led to a better outcome. As it is, he shows people boxed in by circumstances beyond their control. In most of the situations he goes over, it appears they made the best choice available to them, and that in itself makes for a compelling if tragic story.
In fact, I wish more time had been spent on analysis overall. An economics book targeted at the mainstream audience should at least spend more time explaining about the balance of payments, and about how the trading in government securities affects trade in the private sector. But these are relatively minor complaints.
Stephen Hoye is not my favorite narrator. He has one of those superior sounding voices that imply he knows what he's talking about. I understand some people find that reassuring. If hearing someone read a book on economics and referring to "John Maynard KEENZ" all the way through doesn't bother you, then maybe you won't mind Mr. Hoye's narration. I found the British accent annoying, as he used the same one for every British person in the story, from Churchill to Keynes. Yet the other nationalities were either very mild or nonexistent as far as accents go.
In Lords of Finance: The Bankers Who Broke the World, Liaquat Ahamed sets out to explain how the decisions of a a handful of central bankers in the US, England, France, and Germany brought us the Great Depression of 1929. An economist for the World Bank, Ahamed presents a story filled with interesting characters, mishandled events, and analysis easily followed by any reader. Front and center, is the Gold Standard which stabilized currencies, but also prolonged the economic malaise. Circumstances beyond anyone’s control propelled the downward economic spiral and magnified the decisions of key bankers making the problems much worse. There is a lot here only applicable and related to the crash of 1929. However, there is also much here which brings a sense of déjà vu to our current economic circumstance. Readers will be encouraged that we have gotten through these times before. Readers may also be reminded that things could be worse. The reading of Stephen Hoye is a plus.
I enjoyed getting to learn about each of the Bankers. About their strengths and weaknesses, but also their egos. The book also explain that if most of the nations involved would have been willing to do things a little differently WWII may have been prevented.
Given recent economic events, it's fascinating to see what has happened and been done before. This book is fascinating but be prepared for a lot of information during a difficult time in world history.
Opened my eyes the way the media should have been didn't. Not even close. Irregardless of your background/interests you cannot read this book without becoming emotional.
Spoiler alert: it wasn't the stock market crashing that caused the Great Depression. Yoiks! Talk about history repeating itself. I have no background in finance or economics but do now: after reading Sylvia Nassar's "Grand Pursuit" (good beginning and end but my interest waned in mid to last quarter) followed by LoF (preferred LoF much more) I feel entitled to an opinion on the feckless leadership between Wilson and Truman administrations. High school, college students and people I regard as literate are oblivious to the post WWI flight of gold from the Bank of New York to the Exchequer, an unbelievable racking up of bad loans to prop Britain's pound by that axis of evil Montagu Norman and Strong, may they burn forever (when you read this book I dare you to remain non-judgemental). Citizens will find this remarkable given that recent bad bit of luck in the subprimes, AG and S sleepwalking all the while despite poor B. Bourne banging the alarm. Funny, nobody went to jail in either depression. Maybe you should read this book and do your part to prevent the next humiliating repetition?
Can finance be fascinating? Yes! Both the author and narrator pulled this rabbit out of a hat. Most commendable.
Some facts were incredulous but the narrator maintained equanimity and balance. How did you muster self control? It's okay to react when people do foolish things. Let yourself go.
Can you write another book about another boring subject I know nothing about? I can't believe how interesting and dastardly people who were "looking out for us" were NOT. I'll unhesitatingly buy it.
Don't get me started.
Spitting the phrase "Keynesian Economics" with contempt simply shows your lack of understanding. Keynes was the only figure of authority who understood how the gold standard strangled economics post world war one.
A fact which this book adequately lays out the case for. More than that it shows how the knowledge of the old system hamstrung the men of authority between the wars, keeping them from solving the financial crisis of the Great Depression.
It also touches on how FDR's complete lack of understanding of the gold standard actually lead to a reinvention of economics through the second world war and beyond.
A excellent view into financial history which should be required reading for anyone attempting to understand the subject.