IN THIS SUMMARY
There are some economists who view the current financial crisis as a “once in a hundred years” event in the business cycle that is a severe but necessary readjustment that must be endured. However, the current crisis is entirely unique in its expected duration, severity, and effects across the globe. Initiated by a simple downturn in the price of housing, the contagion in the United States real estate market has now spread around the world, and will continue to have consequences and ramifications that extend far beyond it for years to come. In Contagion, John R. Talbott analyzes the root causes of the crisis, predicts a decade of stagnant economic growth in the United States, and warns that what happens subsequently depends on Americans’ appetite for reform of their government, regulation of financial entities, and an overall reexamination of themselves.