Yves Smith Fabulous Book 'Econned' gets Rave Review (Naked Capitalism)

UESDAY, OCTOBER 26, 2010

Rave Review for ECONNED

This is from the October issue of Choice, the library market’s largest publication:

Smith, Yves. ECONned: how unenlightened self interest undermined democracy and corrupted capitalism. Palgrave Macmillan, 2010. 362p bibl index afp ISBN 9780230620513, $30.00

ECONned is a remarkable book. The first part is a devastating criticism of the simplistic approach to finance standard economics takes. Many books offer similar appraisals, but this one integrates deep knowledge of the intricacies of modern finance with a good grasp of economic theory. Smith (author of the Naked Capitalism blog ) then reveals the way that this defective economic theory was sold to an unsuspecting public. The heart of the book is a detailed dissection of the workings of modern finance in the run-up to the 2007-08 meltdown. The author ends with an excellent overview of political systems’ inability to create workable oversight structures. The book is well written, and frequent allusions to subjects such as the structure of the German military command or the breakdown of the financial system in 1700 BCE enhance readability.

All libraries should own this book. Although some details will be difficult for advanced undergraduates, the writing allows readers to scan difficult sections without losing their train of thought. Specialists will benefit from Smith’s insights into the functioning of the financial system. Summing Up: Essential. Upper-division undergraduate through research collections. — M. Perelman, California State University, Chico

I’m also told that ECONNED is mentioned in a newly-filed Credit Agricole lawsuit over a Magnetar-sponsored CDO (ECONNED broke the story of Magnetar, including an extensive discussion of how the trade worked and its systemic impact). So the book is also having a real world effect, even if in a small way.