Atif Mian

House of Debt: How They (And You) Caused the Great Recession, and How We Can Prevent It from Happening Again Atif Mian

Publisher Marketing: The Great American Recession resulted in the loss of eight million jobs between 2007 and 2009. More than four million homes were lost to foreclosures. Is it a coincidence that the United States witnessed a dramatic rise in household debt in the years before the recession that the total amount of debt for American households doubled between 2000 and 2007 to $14 trillion? Definitely not. Armed with clear and powerful evidence, Atif Mian and Amir Sufi reveal in "House of Debt" how the Great Recession and Great Depression, as well as the current economic malaise in Europe, were caused by a large run-up in household debt followed by a significantly large drop in household spending. Though the banking crisis captured the public s attention, Mian and Sufi argue strongly with actual data that current policy is too heavily biased toward protecting banks and creditors. Increasing the flow of credit, they show, is disastrously counterproductive when the fundamental problem is too much debt. As their research shows, excessive household debt leads to foreclosures, causing individuals to spend less and save more. Less spending means less demand for goods, followed by declines in production and huge job losses. How do we end such a cycle? With a direct attack on debt, say Mian and Sufi. More aggressive debt forgiveness after the crash helps, but as they illustrate, we can be rid of painful bubble-and-bust episodes only if the financial system moves away from its reliance on inflexible debt contracts. As an example, they propose new mortgage contracts that are built on the principle of risk-sharing, a concept that would have prevented the housing bubble from emerging in the first place. Thoroughly grounded in compelling economic evidence, "House of Debt" offers convincing answers to some of the most important questions facing the modern economy today: Why do severe recessions happen? Could we have prevented the Great Recession and its consequences? And what actions are needed to prevent such crises going forward?" Review Citations: New York Review of Books 09/25/2014 pg. 66 (EAN 9780226081946, Hardcover) Choice 11/01/2014 pg. 499 (EAN 9780226081946, Hardcover) Contributor Bio:  Mian, Atif Atif Mian is professor of economics and public policy at Princeton University. Contributor Bio:  Sufi, Amir Amir Sufi is professor of finance at the University of Chicago Booth School of Business. Contributor Bio:  Gigante, Phil Phil Gigante is an APA Audie Award winner (The Dark Highlander, The Stainless Steel Rat, and The Watch That Ends the Night), and winner of over a dozen Audiofile Magazine Earphones Awards. He has narrated and directed more than 250 books, and was twice named a "Best Voice in Mystery and Suspense" by Audiofile Magazine. He has been named a Best Male Narrator in the categories of Romance, Science Fiction, Militaria, and Mystery/Suspense, as well as "Favorite Dual Narrator" (with Natalie Ross). Phil also works in film, TV and radio, and is the Producer/Director of Gigantic Productions theatre company. He makes his home in the Midwest. Contributor Bio:  Bond, Jim Bond is a producer and host of radio talk shows, with an extensive background in theatre and the musical stage. Contributor Bio:  Berkrot, Peter A veteran of stage and screen, Peter Berkrot held feature roles in "Caddyshack" and Showtime's "Brotherhood". He has recorded over 170 audiobooks, over 100 for children; has been nominated for an Audie Award; and has received a number of "AudioFile" Earphones Awards and starred reviews.