Lords of Finance

The Bankers Who Broke the World

By: Liaquat Ahamed

Narrated by: Stephen Hoye

Length: 18 hrs and 32 mins

Publisher's summary

Pulitzer Prize, History, 2010

It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person's or government's control. In fact, as Liaquat Ahamed reveals, it was the decisions made by a small number of central bankers that were the primary cause of the economic meltdown, the effects of which set the stage for World War II and reverberated for decades.

In Lords of Finance, we meet the neurotic and enigmatic Montagu Norman of the Bank of England, the xenophobic and suspicious Émile Moreau of the Banque de France, the arrogant yet brilliant Hjalmar Schacht of the Reichsbank, and Benjamin Strong of the Federal Reserve Bank of New York, whose facade of energy and drive masked a deeply wounded and overburdened man.

After the First World War, these central bankers attempted to reconstruct the world of international finance. Despite their differences, they were united by a common fear - that the greatest threat to capitalism was inflation - and by a common vision that the solution was to turn back the clock and return the world to the gold standard. For a brief period in the mid-1920s, they appeared to have succeeded. The world's currencies were stabilized, and capital began flowing freely across the globe. But beneath the veneer of boomtown prosperity, cracks started to appear in the financial system. The gold standard that all had believed would provide an umbrella of stability proved to be a straitjacket, and the world economy began that terrible downward spiral known as the Great Depression.

As yet another period of economic turmoil makes headlines today, the Great Depression and the year 1929 remain the benchmark for true financial mayhem. Offering a new understanding of the global nature of financial crises, Lords of Finance is a reminder of the enormous impact that the decisions of central bankers can have, of their fallibility, and of the terrible human consequences that can result when they are wrong.

©2009 Liaquat Ahamed (P)2009 Tantor

Critic reviews

"Ahamed cannot have foreseen how timely his book would be..... Lords of Finance is highly readable - enlivened by vivid biographical detail but soundly based on the literature. That it should appear now, as history threatens to repeat itself, compounds its appeal." ( Financial Times)
"Erudite, entertaining macroeconomic history of the lead-up to the Great Depression as seen through the careers of the West's principal bankers....Spellbinding, insightful and, perhaps most important, timely." ( Kirkus Reviews)

A Financial Reflection

This book was very informative as well as enjoyable. It was interesting to see how four major countries (and their financial bankers) brought the world to their financial knees during the Great Depression. I could identify because there are parallels to what is happening today. I was compelled to keep listening. After I read Ben Bernake's comments in Time Magazine regarding the book's merit,I appreciated its value even more. This is an informative account of the characters who played major roles in the Great Depression told within a historical perspective. A great read.

Very informative and educational book!

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.

Very interesting

It was a great story! Very engaging and informative. Will recommend this book to anyone.

Astonishing history of banking and finance

Revelatory account of the central figures in the history of Central Banking and finance throughout the world

Now I Think I Understand

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.

5 star story

What made the experience of listening to Lords of Finance the most enjoyable?

Intrigue found in this book is both malleable and insightful. I learned a lot about history that I otherwise would have never known, and it was enjoyable.

Who was your favorite character and why?

Hjalmar Schacht. I did not know who he was, nor did I know that he played such a close role to the infamous Nazi party leading up to WWII. It is always good to read (listen to) history, especially of this era. It's exciting to find a figure who is close to the fray, and he is also in this gray area between good and evil - as most of the central banker characters were. They operated in a highly charged ethical and moral environment where decisions mattered almost minute by minute in some scenarios.

Would you listen to another book narrated by Stephen Hoye?

Absolutely.

Did you have an extreme reaction to this book? Did it make you laugh or cry?

A few times I laughed, especially those eureka moments when you realize the history in actuality might be different than the history in pill-form taught to children.

Any additional comments?

I read it due to an interest in central banking after reading Alexander Hamilton's biography. I would recommend it to any who may just enjoy history in general without a special interest in financial history; however, it can be overbearing with financial details and culture which tended to be more boring than anything else.

Pulitzer Prize winning history of the Great Depression

This book is an accurate account of the circumstances leading up to the Great Depression, and particularly the roles of four main central bankers. As a student of Finance, History, and Economics, the listener will grow in understanding of each. It is not so difficult that it requires a degree in economics. It contains enough detail and figures as to be exciting for finance and Economics career professionals. The reader was very clear, easy to listen to and accurately portrayed accents which helped to distinguish characters. A must read. Highly recommend.

Frenetically frightening commentary

This is a frenetically frightening commentary that reads like a story. The performance by Stephen Hoye has glitches of misreading that are apparent if one reads the book while simultaneously listening to the Audible. However, overall his well modulated voice fosters understanding and enhances the entertainment quality. The book is vividly written, well-referenced, and illuminating. A must read, this Audible makes a worthy contribution.

Absolutely fascinating!

Made the personalities vivid and the time period relatable. Who knew banking and finance could be so entertaining?! Talk about history coming alive... Highly recommend.

Dreary writing about dreary bankers

The book presents a long-winded argument that four financers and their decisions increased the likelihood of the great depression. Detailed descriptions of non-essential characters, itemized dinner receipts, and occasional trivial but obvious factual errors (browning automatic fitting within a purse) detract from what otherwise could be an active and entertaining account. When the dreary, depressing discourse is finally over, you’ll understand a banker’s perspective of the policy decisions that exacerbated the prior poor banking policies.