Whoops Essay -- Analysis, John Lanchester

The book Whoops Why every unmatched owes everyone and no one can pay by John Lanchester, will be analyzed in this essay in order to look at the wider geopolitical banking strategy, the roles and development of international institutions and strategies that have lead to the current economic crisis.At the beginning of the book, the author identifies both key events which created the purlieu for such a crisis to occur the Cold war and the tearing down of the Berlin W solely. These two events are pointed let on because as he sees it, the cold war provided the bullyistic nations with an opposite system to compare to, and its advantages in terms of social legal expert and peoples rights were incomparable. However after the glide by of the Berlin Wall, capitalism began a victory political party that lasted twenty years (J.Lanchester, p15), and as at its core capitalism is non an equal distributor of wealth, in addition to many countries after the fall abandoning their focus on soc ial justice and focusing on growth, which was not sustainable. Here the author starts to lead the reader to considering how the strategies of society as a whole and key agent of the financial industry were formation of the environment in which they were. A proportion of the blame must lie with accredited agents of the industry and their lack of actions. Deregulation had gone to a fault far and governments were too slow or unwilling to act on time. An example given up is when five major banks (Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Sterns, and Morgan Stanley) in 2004 were allowed to cut the amount of capital they had to hold as a reserve against potential loses. (J.Lanchester, p.163). The author points out how successful lobbying had become and that those banks at one point wer... ...100). These three banks had to all be bailed out. This situation incorporates the key four elements of the authors argument, and is one of many.The books prevailing theme is how the st rategy adopted by various agents of the financial industry has trickled down to the society. The author upon mentioning the creation of securitization, some(prenominal) times notes that this is what broke banking. This change in strategy of banks and the society as a whole led to many changes. The lender and the borrower being stranded and the loan sold-off is a key flaw and arguably, speaking in ecumenic terms can be largely attributed to the systematic errors existence which contend a large role in the most recent crisis. passim the book there is a feeling that the author sees the system as not being beneficial to the end consumer when fundamentally this should be the opposite.