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Global Crisis


Synopsis


How to account for decades of worldwide war, revolution, and human suffering in the seventeenth century? A master historian uncovers the disturbing answer.

Revolutions, droughts, famines, invasions, wars, regicides - the calamities of the mid-seventeenth century were not only unprecedented, they were agonisingly widespread.  A global crisis extended from England to Japan, and from the Russian Empire to sub-Saharan Africa. North and South America, too, suffered turbulence. The distinguished historian Geoffrey Parker examines first-hand accounts of men and women throughout the world describing what they saw and suffered during a sequence of political, economic and social crises that stretched from 1618 to the 1680s. Parker also deploys scientific evidence concerning climate conditions of the period, and his use of 'natural' as well as 'human' archives transforms our understanding of the World Crisis. Changes in the prevailing weather patterns during the 1640s and 1650s - longer and harsher winters, and cooler and wetter summers - disrupted growing seasons, causing dearth, malnutrition, and disease, along with more deaths and fewer births. Some contemporaries estimated that one-third of the world died, and much of the surviving historical evidence supports their pessimism.

Parker's demonstration of the link between climate change and worldwide catastrophe 350 years ago stands as an extraordinary historical achievement.  And the contemporary implications of his study are equally important: are we at all prepared today for the catastrophes that climate change could bring tomorrow?

Summary

Chapter 1: The Seeds of Disaster

* Summary: Explores the underlying causes of the financial crisis, including deregulation, excessive risk-taking by banks, and a housing bubble fueled by subprime mortgages.
* Real Example: The collapse of Lehman Brothers in 2008, which was driven by its excessive exposure to subprime mortgages and complex financial instruments.

Chapter 2: The Panic Begins

* Summary: Describes the initial stages of the crisis, including the collapse of Bear Stearns and the bailout of AIG.
* Real Example: The September 2008 collapse of Lehman Brothers, which triggered a global financial meltdown.

Chapter 3: The Global Fallout

* Summary: Examines the impact of the crisis on the global economy, leading to widespread recessions and unemployment.
* Real Example: The Great Recession, which saw global GDP growth plunge and unemployment rates surge.

Chapter 4: The Origins of the Toxic Assets

* Summary: Delves into the creation and distribution of subprime mortgages, which became the catalyst for the crisis.
* Real Example: The securitization of subprime mortgages into complex financial instruments, which masked the underlying risk.

Chapter 5: The Role of Government

* Summary: Analyzes the role of government policies and regulations in contributing to the crisis.
* Real Example: The repeal of Glass-Steagall in 1999, which allowed banks to engage in both commercial and investment banking.

Chapter 6: The Failure of Regulation

* Summary: Examines the shortcomings of financial regulation in the United States and other countries.
* Real Example: The failure of the Securities and Exchange Commission (SEC) to adequately oversee the financial industry.

Chapter 7: The Response to the Crisis

* Summary: Describes the various measures taken by governments and central banks to mitigate the crisis.
* Real Example: The Troubled Asset Relief Program (TARP), which injected capital into banks to prevent a system-wide collapse.

Chapter 8: The Long-Term Consequences

* Summary: Discusses the lasting effects of the crisis, including increased government debt, reduced economic growth, and social unrest.
* Real Example: The ongoing sovereign debt crisis in Europe, which has its roots in the financial crisis.

Chapter 9: Lessons Learned

* Summary: Presents recommendations for preventing future financial crises.
* Real Example: The passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which aims to strengthen financial regulation.