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House of Debt

How They Caused the Great Recession, and How We Can Prevent It from Happening Again
in: Economics
Summary:

The book examines the causes of the Great Recession, emphasizing the role of household debt and the banking sector in triggering the economic downturn. It proposes policy solutions to mitigate the impact of similar crises in the future, focusing on debt restructuring and financial reforms to prevent excessive borrowing and lending.

Key points:

1. Leverage Cycle: Mian and Sufi believe the Great Recession was caused by households borrowing too much. When house prices dropped, spending decreased, leading to the recession.

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