In response to the ongoing financial crisis, the U.S. government has significantly expanded its role in economy, resulting in new legislation and both public and private policy overhauls. But these hasty efforts to buoy the economy may ultimately do more harm than good. In No Way Out?, Vincent R. Reinhart and his coauthors provide a concise narrative of the financial crisis, the mismatched market incentives and government policies that precipitated it, and the likelihood of its recurrence. This volume is an indispensable resource for policymakers and financial leaders and a timely reminder that until we understand the history of government intervention in the marketplace, we are doomed to repeat failed policies.

Why anti-lock brakes make us drive faster Why saving money can lead to financial crises How football helmets make the game more dangerous Why letting forest fires burn can be safer than putting them out We have learned a staggering amount about human nature and disaster-yet we are continually unprepared for car crashes, floods, and financial crises. Partly this is because the very success we've had making life safer enables us to take more extreme, different risks. As our cities, transport systems, and financial markets become more interconnected and complex, so does the potential for disaster. How do we stay safe? Should we? What if our attempts are exposing us even more to the very risks we are trying to avoid? What if acceptance of danger ultimately makes us more secure and prosperous? Is there such a thing as foolproof? In this fascinating account of risk-taking and crisis, Greg Ip presents a macro theory of human nature and disaster that explains how we can keep ourselves safe in our increasingly dangerous world.