*Slapped by the Invisible Hand*

That's the new Gary Gorton book and the subtitle is The Panic of 2007.  It brings together Gorton's writings on the crisis in one convenient place but it serves up a fascinating afterword in which he asks how people will view this crisis one hundred years from now.

We've already covered Gorton's writings here.  As I've already mentioned, for anyone interested in the crisis, or in banking and finance more generally, this is absolutely essential reading.  I also take his analysis to suggest (here this is my gloss, not his words) that there is no way to avoid crises since "bank run-like phenomena" can pop up in many different ways in any economy with significant liquidity transformation.


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