Boomerang by Micheal Lewis

This book, a follow up to Lewis's book The Big Short has Lewis traveling the globe to visit countries deeply affected by the financial crisis of 2008. Starting in Iceland, it being the first country to go broke, he investigates how this country convinced itself it was full of financial masterminds as its three major banks grew at astronomical rates in the last decade. Next we visit Ireland and see how Ireland became one big housi ng bubble. At one point during the bubble Ireland's financial numbers indicated it was the wealthiest country in the world. Lewis investigates this and finds it was all housing. People selling houss for more and more money to each orher and calling themselves rich as they walk in spikes on top of the bubble.

Lewis talks about how in Ireland and other Western countries protecting individual depositors makes sense but that protecting bondholders is ludicrous. He mentions one bondholder as the collapse starting trying to sell at fifty cents on the dollar only to find no market. The next morni g he woke to find that the Irishgovernment had decided to cover all the bondholdes losses as well.

We see Geeece a country that made up fake months to pay their employees for to increase their benefits. Ecen today we see the news and know they are n the frontlines of the default crisis. They as a country and culture do not seem to understand the realities they are facing.

Perhaps most worriisome is when Lewis turns to America. When he examines the amunts owed and unfunded to pensioners in this countey it is easy to see what is coming. Looking at California as the canary in the coal mine we examine the administration of Arnold Schwarzeneger. He took office on a recall and yet thinking he could vridge the gap between the extermists on both sides found himself sponsering reasonable referendum measures. All went down t defeat.

The problems in California are manifest. Legislative districts drawn to protect liberals or conservatives. Thus there is no gain in compromise, in fact those that do will be punished. In California and presumaby elsewhere Americans want all the services they have always had but do not want to pay for them. So we borrow and borrow. It is a terrifying assesment. I truly do not know if we in this country have the mettle to withstand rhe economic crisis that are on the way.


This is not a Stephen King book. It is scarier.