Slapped By The Invisible Hand by Gary B Gorton
The Panic of 2007
An accessible account of the 2007–2008 financial crisis that argues the collapse was a classic banking panic transplanted into the modern “shadow banking” system: short-term secured funding markets like repos functioned as money, and when investors lost confidence in the value and information quality of securitized collateral a run ensued. The book traces how securitization, opaque credit enhancements, and information asymmetries turned complex financial instruments into fragile promises, compares this episode to earlier banking panics, and emphasizes how systemic risk arose from private-market money substitutes — drawing lessons for regulation, transparency, and the role of lender-of-last-resort backstops to prevent similar collapses.
- Published
- 2010
- Nationality
- American
- Length
- Unknown
- Pages
- Unknown
- Original Language
- English
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- Alternate Titles
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