Monday, March 28, 2011

Book Review: Epic Recession - How Did It Happen, How Bad Will It Get?

In the not-too-distant past, bankers, financiers, and investors could do no wrong. They were the wizards of Wall Street, ushering in a new era of economic expansion. But by 2006, it became very clear that their magic was just an illusion. The reality? Millions of homeowners were defaulting on their mortgages, millions of pensioners were watching their 401k's evaporate, and millions of workers were losing their jobs.

Investors and bankers didn't fare nearly as badly. They just shut down their old hustles, moved on down the road, and reopened for business as if nothing had happened.

Throughout this period, billionaire Warren Buffet's advice to investors was exercised in full force - " The first rule is to not lose money. The second rule is to not forget rule number one." - and backed up by the US Treasury.

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