Overall score 8.2/10
The Courage to Act by Ben Bernanke
The Courage to Act by Ben Bernanke is one of the better economics books I’ve read. Recounting the events before, up to, and after the ’08 crisis, Ben Bernanke had a front seat to the entire situation as chairmen of the Federal Reserve. Bernanke brings a unique insider’s point of view from the crisis and objectively reviews exactly what happened and how different areas of the government, obviously with heavy emphasis on the Fed, reacted and tried to deal with the crisis and it’s eventual fallout.
I get it may not make the most exciting reading for someone just interested in personal finance but for anyone interested in macroeconomics and how the financial system works in the United States I highly recommend this book. Having graduated from college with a degree in economics I had plenty of classes that referenced and were even focused on financial crisis’, especially the Great Recession of 2008-2009 but not a single teacher could truly convey what Ben Bernanke so simply puts in his book. How close not only the financial system came to ruin but the United States economy along with it boggles my mind. The complete evaporation of credit may seem to have affected Main Street with higher interest rates and stricter lending criteria but had the Fed and the government not intervened there could have been a complete collapse of the very fabric of our capitalistic society.
I know that sounds like a doomsday prophecy and looking back from where we are now it seems hard to fathom the conditions that led to this crisis and the crisis itself. Personally I was too young to fully understand what was going on. All I knew was that a lot of people were out of work and my parents retirement accounts lost a lot of money. Now reading the chairman of the Fed’s first hand account of the crisis I understand why those accounts lost so much value and why people were looking for work.
Bottom line is this book will help you if you plan on studying economics in college. This book will help you if you want to understand markets better and the interconnection of our financial system. And this book will help you if you want to understand the recession. It’s a welcome glimpse into the brain of Ben Bernanke and you should take full advantage.