Charles Morris has new book explaining the credit crunch. It is titled "The Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash." This looks to be a great book based on some of the reviews I have seen. In the meantime, Mr. Morris has provided us with an article over at Foreign Policy that provides the steps leading up to the current financial crisis. I have posted his summary points below.
Eight Steps to a Trillion-Dollar Meltdown
1. The Fed spikes the punch bowl.
2. Leverage soars.
3. Consumers throw a toga party.
4. A dollar tsunami.
5. Yields plummet.
6. Hedge funds peddle crystal meth.
7. A ratings antigravity machine.
8. The Wile E. Coyote moment arrives.