The Storm: The World Economic Crisis and What it Means

Vince Cable

Highlighting the cataclysmic nature of the present economic crisis, this book offers a lucid guide to the confusion and indecision accompanying the global downturn.   Leaning on his economic industry experience, Cable assesses the various global financial decisions over the last decade, diagnosing each weakness as it leads to progressive collapse.  The Storm identifies and explains each stage of the crisis and then implores governments and organisations toward thoughtful resolution.

Beginning with the reality of sustained decline, Cable identifies trends of complacency within the British government, offering a national case study for global economies.  The book navigates from wavering oil prices and sovereign markets to derivatives and debt consolidation, plotting the variance between safe and sadistic market decisions. He explains the danger of inaction towards the huge 'bubble' in property prices and high levels of personal debt, combined with increasingly exotic and opaque trading within the financial markets.

Cable also encourages vigilance within governments and economies in differentiating between solutions and scapegoats.  To this end the book identifies pitfalls to both economic and political responses, highlighting:

• The danger of insular responses which can result in over promotion of isolationism and nationalism,
• Discreditable “peak” prices for oil caused by regimes unable or unwilling to meet demand,
• Paradoxical policies which dually encourage and castigate reckless lenders,
• Confused generalisations that re-regulation necessarily means “dirigisme and state control of economic activity,”
• Policies that deter liberal market ideology and compromise living standards extended to poorer countries, and
• A general distrust of capitalism which would cause an unfortunate shift from free a free market economy.

Vince Cable previously warned of the complacency of regulators, politicians and bankers, noting the formation of an under-regulated capitalism and dysfunctional financial market system.  In an effort to avoid repeating mistakes, this book encourages policy makers, investors and business thinkers to understand the current economic crisis before moving forward with a myopic new global economy.