Senseless Panic

The truth about the 2008 economic crisis from a Washingtoninsider The 1980s opened with the prime interest rate at an astonishing21.5 percent, leading to a severe recession with unemploymentreaching nearly 11 percent. Depression-like conditions befell thecountry, the entire thrift industry was badly insolvent and themajor money center banks were loaded with third world debt. Some3,000 bank and thrifts failed, including nine of Texas' tenlargest, and Continental Illinois, which, at the time, was theseventh largest bank in the nation. These severe conditions werenot only handled without creating a panic, the economy actuallyembarked on the longest peacetime expansion in history. In Senseless Panic: How Washington Failed America,William M. Isaac, Chairman of the Federal Deposit InsuranceCorporation (FDIC) during the banking and S&L crises of the1980s, details what was different about 2008's meltdown thatallowed the failure of a comparative handful of institutions tonearly shut down the world's financial system. The book alsotells the rousing story of Isaac's time at the FDIC. * Details the mistakes that led to the panic of 2008 and2009 * An updated paperback revision of the bestselling book on the2008 economic crisis, including a fascinating new Epilogue * Demystifies the conditions America faced in 2008 * Provides a road map for avoiding similar shutdowns and panicsin the future * Includes a foreword by Federal Reserve Chairman PaulVolcker Senseless Panic is a provocative, quick-paced, andthoughtful analysis of what went wrong with the nation's bankingsystem, a blunt indictment of United States policy, and a road mapfor making sure it doesn't happen again.