This book traces the key events in the US political and economy history that have supposedly led to the current crisis. Books such as these attempt to try to make a good narrative of the events around us. As they say , connecting dots backwards is easy ..and so this book in that sense does a better job. Usually crisis is associated with a specific asset class. Junk bonds, CMO’s, Real estate, etc.

Last 5 day chart of VIX summarizes the crisis on wallstreet. It is currently at 73!!

Via Steven Shreve: To prevent a recurrence of financial crises, some call for a return to a simpler time, before derivative securities and the quants who analyze them–a time when investors bought stocks and bonds and little else. Such complaints miss the point. When a bridge collapses, no one demands the abolition of civil engineering. One first determines if faulty engineering or shoddy construction caused the collapse. If engineering is to blame, the solution is better–not less–engineering.

Dow says : Don’t fool me by Rate cut !! The opera continues :)

In one year 55% GDP of US is wiped out by the market ! AND Dow keeps falling like there is no tomorrow 600 point drop Where are we heading? !!!