Our financial crisis: what happened, how we got here, and what needs to be done Henry Kaufman-an esteemed economist and statesman-is one of the most preeminent financial figures of the day, with a history of success from the 1980s, when his firm, Salomon Brothers, ruled the bond markets. In The Road to Financial Reformation , Dr. Kaufman, who has spent a lifetime entrenched in the world of finance, provides an insightful account of the history and impact of post-World War II financial markets on the economy-what happened, how we got to where we are today, and what needs to be done. Drawing on his vast breadth of knowledge and experience, Kaufman reveals the mistakes that got us into this debacle, the consequences-as they have not been fully realized-and how to put our derailed economy back on track. This book details Dr. Kaufman's warnings and concerns expressed repeatedly throughout the last quarter century, and shows that what he predicted came to pass. Provides an insightful account of the history and impact of post-World War II financial markets on the economy - Explores the erosion of credit ratings on corporate debt in the late 1980s and the rapid increase in financial concentration of institutions - Discusses the blinding faith in models that rely on historical data but fail to take into account economic and financial market structural changes With his breadth of knowledge and experience, Kaufman details that this crisis was foreseeable (he saw it coming), and how we created this history-making financial crisis. He also explains the consequences still to come, and presents solutions on how we can recover and reform the markets. "OF THE torrent of books being spewed out on the global financial crisis, most fall into one of two categories: the microscopic exploration of a particular episode or scandal, such as the fall of Bear Stearns, or the sweeping attempt to map the meltdown’s moving parts and put it all in an historical context. Henry Kaufman is well placed to deliver the latter, having earned the nickname "Dr Doom"—for his warnings about the dangers of debt bubbles—back in the days when today’s doomster-in-chief, New York University’s Nouriel Roubini, was still in short trousers. His book is an accessible exposition of the causes and consequences of the market trauma . . . Mr Kaufman ruthlessly dissects the past quarter of a century’s financial deregulation. . . He showers his argument with supporting facts and figures. . . A deep thinker on the workings of markets . . ." —The Economist "A good read -- and a thought-provoking one." —Financial World "Wisdom for a punch-drunk Wall Street. . . gives the lie to the notion that no one saw the financial crisis coming. [Kaufman] was not alone, but was earlier than most. . . In his latest book, Kaufman once again aligns himself with those who believe that a vital task of the central bank is to take away the punchbowl just as the party gets going. Kaufman’s prejudices are well grounded. . . His central insight about banking is old, simple, but profound. . . The occupational hazard of being a financial prophet is that it is impossible to forecast exactly when a bubble will burst. This means that hard-nosed market practitioners tend to discount early warnings. What a shame that Dick Fuld, chief executive of the ill-fated Lehman Brothers, on whose board Kaufman sat, failed to heed the warnings of this remarkable economic sage." —Financial Times "Provides an insightful account of the history and impact of post-World War II financial markets on the economy-what happened, how we got to where we are today, and what needs to be done. Drawing on his vast breadth of knowledge and experience, Kaufman reveals the mistakes that got us into this debacle, the consequences-as they have not been fully realized-and how to put our derailed economy back on track. This book details Dr. Kaufman’s warnings and concerns expressed repeatedly throughout the last quarter century, and shows that what he predicted came to pass. . . Provides an insightful account of the history and impact of post-World War II financial markets on the economy. Explores the erosion of credit ratings on corporate debt in the late 1980s and the rapid increase in financial concentration of institutions. Discusses the blinding faith in models that rely on historical data but fail to take into account economic and financial market structural changes. With his breadth of knowledge and experience, Kaufman details that this crisis was foreseeable (he saw it coming), and how we created this history-making financial crisis. He also explains the consequences still to come, and presents solutions on how we can recover and reform the markets." —The Financial Regulation Forum " THE ORIGINAL DOCTOR DOOM IS BACK , with some fresh warnings. Henry Kaufman, famous for his bearish views in the 1970s and '80s, now takes up the financial crisis of the past year and urges major reforms. . . chock full of ideas an