Checking the Banks

Banks almost wrecked the economy in 2007, and they affect our lives in a million ways today, but almost none of us understand them. I’ve got a mortgage and a bank account and a checking account and, until I read this book, I didn’t really understand what the local bank did with my money (or the conditions under which it allows me to use its money). I also did not understand how and why banks are involved in funding (or refusing to fund) city initiatives, or how and why they handled my retirement funds and other massive pools of public monies. I only sort of understood the difference between different types of banks: thrifts, investment banks, S&L’s, etc. When I listened to economists on the news, I basically had to take what they said on faith, uncomprehending and uneasy.Sgouros throws back a curtain, and shows how the banks work. He does this with almost impossible clarity. The things he describe are complicated, and he doesn’t oversimplify them, but he does make them intelligible. This is like the best college course you ever had. Also, it doesn’t advance any particular political claims about banks; it’s only political aim seems to be to give citizens the knowledge we need to make informed choices (for ourselves and our families, but also for our communities and nation). It produces this odd result: The book ought to be peeking out of the coat pocket of anyone who ever showed up at an “Occupy” rally, but it ought to be in every cubicle on Wall Street. For me, anyway, this book is among the most important I’ve ever read.(Also, the writing is not just clear, it’s elegant and witty and a pleasure to read.)

This book was clear, thoughtfully organized, and very carefully written. It was also easy to read, and gave an overview of current banking practices and regulations along with specific examples of where they went wrong that I have never been able to find elsewhere. You do not need to be an expert to follow the logic involved in the variety of banking practices discussed. But on the other hand, the author does not "talk down" to the reader as if the reader had no brains.I highly recomment this book.

As a new manager of an almost billion dollar public fund I deal with banks quite a bit. The author was able to make the mystery of the banks elementary enough to be understood by most anyone who needs a quick study. Many municipalities are considering forming their own public banks to keep monies local and fund local infrastructure. I highly recommend this book if your city, county, or state is considering such a move.