Stress Test by Timothy F. Geithner

The book Stress Test (Reflections on Financial Crisis) by Timothy F. Geithner (former Secretary of Treasury) is a great source of information about the global financial system. I can say that I learned a lot by listening to the audiobook version. Mr. Geithner refers several times to the movie “Its a Wonderful Life” when people rush to pull money out of the Bailey savings and loan. That movie moment has always resonated to me as a way to understand the financial system. The system is based on trust and as Geithner says; “when trust disappears no one is safe” and that means especially the little guy. I have heard many people say that the bankers got away with murder, and the bailouts were unfair because only poor and working people were hurt. Geithner makes it clear that what he calls “Old Testament solutions” of punishment cause panic in financial systems(with lots more pain for the little guy). I would recommend anyone wanting to learn more about the financial system, the crisis of 2007-08 to read this book and “The Big Short” by Michael Lewis.

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