Now eight years on from that crisis, he has revised and updated his research and in an exclusive interview discusses his latest findings. The problems of over-indebtedness, he argues, remain with us and indeed are getting worse. Central bankers urgently need to wise up to the problem before it is too late — and investors who fail to prepare for the potentially damaging consequences of the next phase in the debt cycle will suffer heavy losses. This minute podcast is the first in the latest series of free regular interviews with prominent figures in the investment world , brought to you by Money Makers.
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More than that, like an abandoned mine, the book stands as a monument to what was already known about the global credit expansion and the strains in the financial system before the halving of equity market prices from the early peaks. Most importantly, and sad to say, this equity market trauma foreshadows even more disastrous results of the financial folly that has reached proportions unimaginable in the summer of And so, the primary function of the book -- "as a timely warning of the perils that lie ahead" -- remains valid.
Their negligent oversight has permitted an explosion of corporate and household credit that has fueled a succession of false markets in stocks, bonds, and property. Alarmed by the monster so created, the U. Federal Reserve has spent much of the past five years staving off the evil day when foolish lending turns into bad debt. Innovations in the use of derivatives, structured products, and other complex financial instruments have been applauded by the central banks on narrow technical criteria.
But these supposed bastions of conservatism have failed to comprehend the wider implications for financial stability. From poorly documented home loans to sub-prime auto loans to subordinated corporate debt and junk bonds, permanently easy access to credit has compromised economic management in the U.
Lamentably, this staggering collective flight from reason has been endorsed by the economics establishment. The failure of many of the finest economic minds to engage with the rapid evolution of our financial structures and institutions has led to a superficial assessment of this unprecedented credit experiment.
Only now, as various credit markets face the inevitable tests of higher interest rates and the realistic pricing of credit risks, is the threat of a pandemic of debt-related distress beginning to be taken seriously.
Government budgets, already strained by the weight of social support, have limited scope to respond. In short, tougher economic times lie ahead, when personal debts will hang more onerously than for 75 years. Debt and Delusion recommends a hasty! Peter Warburton September Read more Read less click to open popover Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number. Peter has updated the book with a new Preface and fresh charts in the Appendix. The most visible change, however, is the gold stamping, leather-like cover, and fine endpapers that make this edition quite suitable as a gift. One word of warning: The opening pages will scare the hell out of you.
But, while he may be a voice crying in the wilderness, Peter is more like the Apollo-cursed Cassandra, whose prophecies were always accurate but never believed. He has worked in London as an economic researcher, forecaster, lecturer, adviser, and consultant since If you are a seller for this product, would you like to suggest updates through seller support? So naturally, readers have a right to ask, "Why produce an updated version at this time? Peter Warburton September Read more Read less.
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Customers who viewed this item also viewed. Page 1 of 1 Start over Page 1 of 1. Amity Shlaes. Adam Fergusson. Richard Duncan. Carmen M. What other items do customers buy after viewing this item? Register a free business account. Review " Vaughn, Gold Letter, Inc. That question is clearly answered [in Warburton's] Debt and Delusion. Our authors are excellent writers. They are recognized experts in their fields.
And, most important of all, they are independent thinkers -- a quality that is all too rare in this time of political correctness, economic orthodoxies, and groupthink. Read more. Customer reviews. How does Amazon calculate star ratings?
The model takes into account factors including the age of a rating, whether the ratings are from verified purchasers, and factors that establish reviewer trustworthiness. Top Reviews Most recent Top Reviews. There was a problem filtering reviews right now. Please try again later. Verified Purchase. The book is the most cogent and concise treatment on the subject of the monetary and financial structure of modern times through the end of the 's that I have seen.
This means the whole edifice: the completely globalized meaning interconnected capital-financial-economic system of the developed and developing world. The author cites various milestones in the development of the modern system and its evolution to where it is now.
And, then he gets into various "what if's. Iceland is an extreme casualty of an era in which it became extraordinarily easy to borrow money. But it was more than that: An examination of the nation's banking system, which collapsed over about 10 days this autumn, reveals the degree to which Iceland was one of the international financial bubble's most enthusiastic players.
Home to fewer people than Wichita, Kan. In Japan and Hong Kong, bond buyers got stuck holding all-but-worthless debt. In Beverly Hills, a real-estate developer was forced to default after teaming up with an Icelandic bank to build condos near Wilshire Boulevard. On Friday, Sept. The Friday before the December article, above, was written , the Dow had closed at 8, However, the book should not be considered an "investment book.
What a book. This book is so prophetic apart from being off in timing, that it is uncanny. The accuracy of this book is unbelievable. Mr Warburton predicted that this debt bubble would of burst around I don't understand why more people did not recognise this bubble back in the s. There will be hard-core negative ramifications to this excessive debt accumulation, it's only a question of time.
I do not care what Keynesian economists say, this is a predicament. A must read for those that are interested in this topic. Thank you Mr Warburton for your contribution to this field. All I can say is I wish I would have read this book when it was first printed in Peter Warburton must have been a wiz kid on Wall Street in his earlier days. He predicted the crash of and explains why he knew it would happen.
He also predicts the debt bubble we are presently in will eventually crash. Central banks around the world are relying on bonds debt creation to fund their governments operations, i. The credit markets have outgrown the people's incomes by took many multiples, and that means the central banks simply expand their own currencies to buy their own bonds, since there are not enough buyers for the bonds. With this information one can only conclude, you better have some gold coins in your portfolio.
If central banks have some of their wealth in gold, shouldn't you. One person found this helpful. Excellent evaluation of bonds versus stocks and how they balance each other in an economy subject to recent questions of the sustainability of the current markets..
If you want to know how the economy got so screwed up, spend some time reading this book and you will know MUCH more than you would in 20 years of watching the talking heads on TV trying to feed you the party line via the news or wall street shows!! See all reviews from the United States. Customers who bought this item also bought. There's a problem loading this menu right now. Learn more about Amazon Prime. Get free delivery with Amazon Prime. Back to top. Get to Know Us.
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Debt and Delusion : Central Bank Follies That Threaten Economic Disaster
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