FYI: The global financial crisis of 2007-09 wasn’t unprecedented or unpredictable. It was the logical consequence of a sharp increase in credit supply, which led to a corresponding boom in borrowing and inflated prices for assets most easily used as collateral: housing and sovereign bonds. Lending standards and other limits on indebtedness can fall only so far, however. Once the endpoint is reached, the process begins to reverse, and the leverage accumulated during the boom amplifies that reversal into a catastrophe.
The best books about the crisis explain this process. In different ways, they illuminate our understanding of what happened and provide the intellectual framework for making future crises less painful.
Regards,
Ted
https://www.barrons.com/articles/the-7-best-books-about-the-financial-crisis-1536355267?mod=hp_highlight_2
