Like many, I’ve been following a number of articles, books and videos about the housing crisis and economic collapse. We, the Urban Team, feel it is important for us to gain as complete an understanding in order to best prepare and help our real estate clients.
A friend, whose wealth and financial knowledge is staggering, suggested I read, Meltdown by Tom Woods.
To date, this is perhaps the most complete and logical treatise on the subject and likely the most unsettling. Prior to this book, much of what I’ve encountered points to predatory lenders, poor monitoring by the SEC, an across the aisle push for affordable housing, poor bank regulations and finger pointing at the democrats and republicans (by each other). However, there is seldom mention of the FED.
Wood’s book is the first I’ve read that looks the FED's role in our Nation's past boom/bust cycles as well as many other problems and myths our politicians and media are feeding us. Below is a quick chapter by chapter synopsis.
Chapter 1: A brief look at the many factors that have caused our current crisis with an emphasis on the FED.
Chapter 2: The housing bubble and how the government has been focused on symptoms rather than the disease.
Chapter 3: The politician’s futile reactions in the final months of 2008 and why their bailouts and packages will exacerbate the problems rather than provide a fix. An interesting note is that public opinion was hugely against the bailouts and fixes, yet our elected officials moved forward anyway.
Chapter 4: A look at why economic cycles are exacerbated by the FED’s artificial manipulation of money supplies. You’ll learn a bit about Austrian Economic Theory as well.
Chapter 5: A historical look at the Great Depression and the myths that are still being propagated.
Chapter 6: A look at FIAT verses commodity currency standards. This chapter is a bit wordy as he puts forward many controversial ideas and thoughts.
Chapter 7: Where do we go from here. You’ll just have to read the book to find this one out.
I don’t think I’ve ever suggested a book on this blog and I am now. I believe Meltdown is an important read. I’d suggest putting your political party on the welcome mat as he swings a non-partisan bat at times. Let me know what you think.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
