Dangerous Markets: Managing in Financial Crises

Rating:
Summary: A Good Book to Understand Financial Crises
Review: Contrary to conventional belief, the authors propose that roots of a financial crisis lie in microeconomic rather than macroeconomic factors. Their evidence is convincing.

This is a good book for anyone who wants to know why the past financial crises happened and how to cope with them from both the public and the private perspectives. The authors also present the "ten warning signs of a financial crisis" based on macroeconomic data that can be used as a guideline to predict a crisis in certain economy. But the problem is they cannot predict when it will happen.

The authors' objective to "offer some unique perspectives, case examples, and practical solutions, and an actionable, strategic blueprint that our clients can tailor to meet their specific needs" is well presented.

Rating:
Summary: A Good Book to Understand Financial Crises
Review: Contrary to conventional belief, the authors propose that roots of a financial crisis lie in microeconomic rather than macroeconomic factors. Their evidence is convincing.

This is a good book for anyone who wants to know why the past financial crises happened and how to cope with them from both the public and the private perspectives. The authors also present the "ten warning signs of a financial crisis" based on macroeconomic data that can be used as a guideline to predict a crisis in certain economy. But the problem is they cannot predict when it will happen.

The authors' objective to "offer some unique perspectives, case examples, and practical solutions, and an actionable, strategic blueprint that our clients can tailor to meet their specific needs" is well presented.

Rating:
Summary: A unique and intriguing book
Review: If you are interested in financial crises in emerging markets, or have to manage a company during one, you will learn from this book.

Two features make the book unique in the financial-crisis literature. First is real-world experience. While the authors are up on their economic theory, the book's real contribution is the fruit of years of practice. From poring over the innards of banks' loan books to working out a national re-structuring plan, these guys have actually done it, and done it in multiple nations. Until now, the theoretical works of academia and the IMF/World Bank have had the field pretty much to themselves. This book is a refreshing break, and a vital complement.

Second is that the book speaks not just to policymakers, but to the private sector. There's plenty of advice out there for central bankers and finance ministers for crisis-management; there hasn't been anything for corporate executives and bankers. This book fills that void. If I were a CEO managing during a crisis, I'd want this book on my nighttable.

Rating:
Summary: A unique and intriguing book
Review: If you are interested in financial crises in emerging markets, or have to manage a company during one, you will learn from this book.

Two features make the book unique in the financial-crisis literature. First is real-world experience. While the authors are up on their economic theory, the book's real contribution is the fruit of years of practice. From poring over the innards of banks' loan books to working out a national re-structuring plan, these guys have actually done it, and done it in multiple nations. Until now, the theoretical works of academia and the IMF/World Bank have had the field pretty much to themselves. This book is a refreshing break, and a vital complement.

Second is that the book speaks not just to policymakers, but to the private sector. There's plenty of advice out there for central bankers and finance ministers for crisis-management; there hasn't been anything for corporate executives and bankers. This book fills that void. If I were a CEO managing during a crisis, I'd want this book on my nighttable.

Rating:
Summary: A must read for crisis management
Review: If you have no other book on financial crisis management, you must have this one.

The authors succinctly and clearly explain why economies in crisis do not behave the way economies normally do. They then identify key weaknesses in the financial sectors of crisis economies, and explain why they occur.

The book then goes on to provide a thorough and clear exposition on how crisis economies can be turned around, and what needs to be done, both politically and financially.

At this point the book turns to consider bank restructuring (a very specialised subject) and recovery of NPL portfolios in crisis economies. It concludes with recommendations for strengthening the international financial system to limit early economic collapse and prevent international financial contagion.

I really like this book, both as a guide for students, and a "how to" for CEO's and the financial sector. It is brilliantly clear and practical.

If you want to protect yourself and your organisation from financial crisis, or understand what happens when the economy you're operating in suffers collapse, get this book.