The Daisy Chain: James O'Shea on the savings and loans scandel

Chicago Tribune journalist James O'Shea's book on America's savings and loan scandal is a accessible story of economic mismanagement.

Vernon Savings in Texas had an excellent reputation until is was purchased by Donald Ray Dixon,leading to a number of risky land deals. The state's economic slowdown caused an oversupply of building projects, meaning that no buyers could be found for many of the condominiums (commonholds) built.

Poor regulation meant that risky investments were causing problems for thousands of savings and loans across America, causing the government to pay billions in bailouts. $1.3 billion was the cost of helping just one savings and loan, Silverado Savings and Loan, run by Neil Bush, the then-President's son.

Although the date of publication means that there is little detail on the state bailouts, James O'Shea offers a highly informative critique of the role of federal government, including their loack of regulation and the willingness of some senators (including John McCain) to become seduced by businessmen.

He also makes clear the heroes and villains and is good at finding black humour amongst bleakness.

The Daisy Chain is a timely reminder of how risk taking and a lack of government regulation can cause economic problems.

The book's ISBN is 0-671-71114-8.