Having followed adherents of the Austrian school of economics for some time, I knew exactly what point of view to expect from Tom Woods. I knew I would buy and read this book with the primary intention of lending to others who were not already familiar with the ideas contained within. However, I was pleasantly surprised that even with some familiarity of the subject matter, the book was an interesting read. More importantly, I was extremely impressed with the scope and depth of coverage contained in the ~160 pages of text. Woods and his editor did an excellent job in choosing what material to include and how much time to devote to it. The result is an astoundingly simple presentation of a very complex issue. This is not an easy thing to do, and Woods pulled it off without a hitch. This truly is as close as you can get to one-stop shopping for a concise analysis of the current recession. To readers who are not already familiar with the Austrian school of economics, and especially to those readers who have a healthy skepticism of the views of the book, please do not overlook the Acknowledgments, Further Reading, and Notes sections at the end of the book, as they provide reference to the intellectual clout that stands at the foundation of the ideas and analysis offered an overview. ( )

With the continuing collapse of our financial system, this book provides insight to the root causes as well as solutions that would get us out of our current recession/ depression. You don't need a degree in economics to understand this book- in fact it probably helps if you have not been brainwashed by socialist-leaning professors in today's colleges and universities. The Austrian School of Economics has provided warnings for decades about the problems we are experiencing today. Our politicians and leaders rely on the ignorance of the American populace to perpetuate their controls and continue building a society that depends on government.

A poignant analogy in this book: a home builder has his supply of bricks necessary for a house on the lot where he is going to build it; he cannot buy more bricks; upon nearing completion he recognizes that he is far short of the bricks necessary for the size house he has constructed; this far into the house his only remaining option is to tear down the house and start over; had he realized early on in the project that he was short he could have revised the plans and built a home based on the actual bricks he had. ( )

In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" during campus rallies last year, it's like something has been put in our water to cause our eyes to glaze over and our minds to wander off at the very mention of centralized banking.

Which is, of course, a Problem, since as historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory (the Austrian School, to be precise) and in practice, Fed policy fueled an artificial boom and instead of allowing the necessary, if unpleasant, short-term bust that will lead to recovery, is pursuing policies guaranteed to drive us deeper into the abyss. Little of this finds its way into the popular or business press, suggesting that the people who know the truth aren't talking, and the people who are talking either don't know or are deliberately trying to keep the helicopter hidden. As Woods writes, "critics of the market who ignore the arguments raised in this chapter are, to say the least, not being honest" (p. 86).

But to paraphrase Will Rogers (no relation), it's not so much the things we don't know that are a problem, it's the things we DO know that aren't really true. That's why every bit as important as Woods' explanation of the role of the Federal Reserve in the unnecessary cycle of boom and bust is his taking down of decades' worth of myths about the government's role in the economy. As the author points out, historians have more or less abandoned the idea that New Deal intervention "got us out of the Depression," but the myth remains stronger than ever among journalists and the public. The result of this is not only a profound misunderstanding of American history, but more to the point, a widespread delusion that "history proves" massive government spending promoting consumer demand is the way out of a recession. Here again we see the apocalyptic power of bad ideas.

All this suggests the economic crisis, and particularly the stimulus-driven response to it on the part of the Bush and Obama administrations, are a domestic equivalent of the Iraq War (I want to note that this is my metaphor, not Woods'): an over-reaction to a situation by and large of our own creation, and sold to the American people through a series of lies, the plan largely benefits those who argue for it most strongly while the rest of us end up poorer. The "opposition" is arguing over details while conceding the fundamental principle -- an intervention that gives the government a foothold of occupation it will probably never relinquish.

That's why "Meltdown" is so important -- and why the Austrian School, which alone not only foresaw the coming crash but understood why it was going to happen, deserves so much wider attention. If I could improve anything about "Meltdown," I would have made even more prominent the citations of thinkers and books interested readers should pursue. Woods does do this in an appendix, and I strongly recommend you read the footnotes closely. But something like the "additional reading" or "books they don't want you to read" call-outs of the author's The Politically Incorrect Guide to American History would, I think, have been even more useful.

If "respectable opinion" does pay attention to this book and the ideas it promotes, it will do so with the same combination of pity and contempt that earlier book received. As Woods writes, "You do not win friends in the political and media establishments by proposing a monetary system that cannot be exploited by governments to enrich their friends, enable their addiction to spending and looting, and fund their bailouts" (p. 134). But out here among the non-establishment, you DO make friends by telling the truth. And Tom Woods has a lot of friends. ( )