tackles the credit crunch in his latest publication
August 28, 2008 11:44Confused by the credit crunch? JC columnist and Daily Mail City editor Alex Brummer helps explain all in his latest publication, The Crunch: The Scandal of Northern Rock and the Escalating Credit Crisis.
In it, he traces the course of the recent financial crisis from its origins in the US subprime market to its impact on the international scene. And you don't have to be a financial whiz to understand it.
"It's an easy read for your Aunt Goldie," says Mr Brummer, who took just three months to write it. "I think I am fortunate because I have good access to all the players, good contacts in the financial world, and everyone was keen to tell their side of the story."
The book, dedicated to his grandson, features the public reaction to last August's collapse of Northern Rock before examining the aftermath of the credit crisis, which he says feels much closer to the Japanese asset meltdown of the 1990s and the Great Depression than anything we have seen since the Second World War. "What I find so mind-boggling is the sheer scale of it. The estimated total loss is $945 billion."
When is it all going to end? "I think it will take a long time to recover. When banks get into trouble, sorting them out takes a very long time. Northern Rock was a lot more complicated than people thought."
Mr Brummer's books include Hanson: A Biography (Fourth Estate, 1994) and Weinstock: The Life and Times of Britain's Premier Industrialist (HarperCollins, 1998).
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