Too Big to Fail: A Book Summery

Too Big to Fail: A Book Summery

Introduction

In the seventeenth and eighteenth centuries, Wall Street was the major commercial thoroughfare in lower Manhattan. The original Dutch settlers in New York built the wall after which the street was named to protect the area from local Indians and the English. By the time of independence, the street was a well-established commercial thoroughfare and also was the site of a local stock market. Traders met at appointed hours outdoors and in coffeehouses to trade the shares of local banks, insurance companies, and the bonds of the new federal government and New York State. Trading developed quickly but was beset by scandal. The outdoor traders formed a new, more formal marketplace that moved indoors in 1817. That market became the New York Stock Exchange (NYSE). Brokers who did not join remained out-of-doors and were transformed in the New York Curb Exchange. Moreover, the transformation of the New York Curb Exchange was acknowledged as it was renovated as the American Stock Exchange.

Summary of the Book

The book's plot was constructed on realistic approach rather than including fictional scenarios and themes to create excitement. The realism included in the book became a competitive advantage for the book; however, it was the center of criticism in the initial phase of its publication. Too big to fail in the last couple of years became appellant before any declaration of the crisis, whether in newspaper reports or regulatory texts. It refers to the huge financial institutions that carry a systemic risk if allowed to go bankrupt. Too big to fail, the film was released in the U.S. with performances by William Hurt in the role of Paulson, Paul Giamatti as Bernanke and Bill Pullman in the role of Jamie Dimon, the CEO of JP Morgan, who managed to acquire Bear Stearns to a value 15 times lower than its pre-crisis price and a transfer of U.S. $30,000 million from the Fed's pen Ross also tells that story. The NYSE grew quickly with the economy but remained free of government regulation for the first 140 years of its existence. During the nineteenth century it developed a reputation for predatory trading practices by its floor traders (Sorkin, 2009, 218-325).

Too Big to Fail is one of the exceptional masterpieces with amazing and realistic theme. The core ideology and plot of the book engulfed minimal fiction as it focused more on the realistic approach that was related to the operations and financial transactions acknowledged at the Wall Street. The first volume of the book was published in 2010 that proved to be so popular that Hollywood also introduced a movie on the concept incepted by the book. The book is one of the exceptional works presented by author during his career.

According to different sources, the author of the book was not only an exceptional writer but he was also well versed in the field of economics. In order to incorporate realism in the book the author interviewed several economists, ...