And the Money Turned into Plastic: The Great Financial Crisis and the Future of Capitalism

A Financial Crisis Like No Other

In 2008, the world financial system teetered on the brink of collapse. The subprime mortgage crisis had triggered a wave of foreclosures, and banks were failing at an alarming rate. Governments around the world were forced to step in with massive bailouts, and the global economy was plunged into a deep recession.

What Went Wrong?

In his book, "And the Money Turned into Plastic," Max I. Basile argues that the financial crisis was the result of a combination of factors, including:

• Lax lending standards: Banks were making loans to borrowers who couldn't afford them, and they were often packaging these loans into complex financial instruments that were difficult to understand.
• Excessive risk-taking: Financial institutions were taking on too much risk, and they were not adequately prepared for the possibility of a downturn.
• Lack of regulation: The financial industry was largely unregulated, and this allowed banks to take risks that they would not have been able to take if they had been subject to more oversight.

The Consequences of the Crisis

The financial crisis had a devastating impact on the global economy. Millions of people lost their jobs, and many businesses were forced to close. The crisis also led to a loss of confidence in the financial system, and this has made it more difficult for businesses to borrow money and invest.

The Future of Capitalism

Basile argues that the financial crisis has exposed the flaws in the current capitalist system. He believes that we need to make fundamental changes to the way that our economy works if we want to avoid another crisis.

Basile proposes a number of reforms, including:

• Tighter regulation of the financial industry: Banks should be required to hold more capital, and they should be subject to stricter oversight.
• A more equitable distribution of wealth: The gap between the rich and the poor has grown too large, and this needs to be addressed.
• A shift to a more sustainable economy: We need to move away from our reliance on fossil fuels and invest in renewable energy sources.

Basile believes that these reforms are necessary to create a more just and sustainable economy. He argues that we cannot afford to go back to the way things were before the crisis.

Why You Should Read This Book

"And the Money Turned into Plastic" is a must-read for anyone who wants to understand the financial crisis and its implications for the future of capitalism. Basile provides a clear and concise explanation of the crisis, and he offers a number of thought-provoking proposals for reform. This book is essential reading for anyone who cares about the future of our economy.

About the Author

Max I. Basile is a professor of economics at the University of California, Berkeley. He is the author of several books, including "The Political Economy of the Financial Crisis" and "The Future of Capitalism."