Financial Stability News

News about financial stability, central banking and theory of money

Ron Suskind confused about equity and debt

You may have read (about) Ron Suskin’s new book  Confidence Men on Wall Street, the financial crisis and the making of a president. I thought the book was a good read. Interesting background on the making of the Volcker rule and gossip on Summers departure. I have to admit beginning in the middle, to get fast to my interesting sections. Obviously I will have to go back an read the rest, as this post is accusing Suskind of getting his economics wrong:

The fundamental problem is that Suskind is stunningly ignorant of basic macroeconomics, financial markets, the financial crisis, and financial regulations — basically, all the subjects you’d need to understand in order to write a competent book about the Obama administration’s economic team.

If you read the post, where some of the most glaring mistakes are quoted, e.g. about equity and debt in the discussion about rescuing Citigroup, you can judge for yourself. Still, though, I thought the part I read was interesting and will go back and read the rest.


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