Stress Test

From the former Treasury Secretary comes a riveting and definitive account of the extraordinary and unprecedented efforts to save the U.S. economy from collapsing in the wake of the worst global financial crisis since the Great Depression. Stress Test by Timothy Geithner takes readers on a gripping journey behind the scenes during the darkest moments of the 2008 financial crisis, shedding light on the strategies and decisions that averted a second Great Depression.

On 26 January 2009, Timothy F. Geithner was sworn in by President Barack Obama as the seventy-fifth Secretary of the Treasury of the United States, having just completed five years as President of the Federal Reserve Bank of New York. It was a time of extraordinary peril and uncertainty, requiring swift, decisive, and innovative action. In this candid and historically illuminating memoir, Geithner shares his personal and professional experiences during this tumultuous period.

In Stress Test: Reflections on Financial Crises, Geithner offers an accessible and forthright explanation of the crucial and often politically unpalatable decisions made by policymakers to stave off economic disaster. He details the most controversial and critical moments, including the catastrophic bankruptcy of Lehman Brothers, the firestorm surrounding the AIG bonuses, and his much-criticised but ultimately successful plan to stabilise the economy in early 2009. Geithner also discusses the fierce battle for sweeping financial reforms, the ongoing aftershocks of the crisis, and the challenges of high unemployment and fiscal dilemmas that persisted long after the initial recovery.

Throughout the book, Geithner provides candid reflections on key figures such as President Obama, Ben Bernanke, Hank Paulson, and Larry Summers. He also examines the complex interplay between politics and policy that has come to dominate discussions about the U.S. economy. Beyond an insider’s account of how the Obama administration navigated the crisis, Stress Test offers a revealing look at the personal side of a man tasked with enormous responsibility during an epochal moment in American history.

Stress Test is not merely a memoir; it is a critical and insightful chronicle of one of the most consequential financial episodes in modern history. It sheds light on the immense challenges faced by policymakers and the complicated dance between economic theory and political reality. For anyone interested in understanding the inner workings of economic policy during a time of unprecedented crisis, Timothy Geithner’s narrative provides an invaluable perspective.