Foolproof book cover

Foolproof by Greg Ip Summary

Foolproof
Greg Ip
3.71 (331 Reviews)
Economics
Finance
Society
Overview
Key Takeaways
Author
FAQs

Overview of Foolproof

In "Foolproof," Greg Ip reveals the paradoxical truth: safety measures often create new dangers. Endorsed by Pulitzer Prize-winner Liaquat Ahamed as "illuminating," this Financial Times best book of 2015 challenges everything you thought about risk. Why did football helmets actually increase injuries?

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Key takeaways

1

The Paradox That Broke Wall Street

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October 13, 1989: Wall Street plunges 7% in a single hour, sending tremors through trading floors still haunted by Black Monday's ghost. At a Cambridge conference days later, Larry Summers radiates confidence-government safeguards have created impenetrable firewalls between finance and the real economy. Across the room, economist Hyman Minsky offers a darker prophecy: every successful rescue operation only emboldens greater risk-taking. Two decades later, the 2008 financial meltdown would vindicate Minsky's warning in spectacular fashion. What if our most sophisticated safety measures don't protect us-but instead create the conditions for catastrophe? This counterintuitive insight lies at the heart of a phenomenon that explains everything from forest fires to financial crashes: the more secure we feel, the more danger we court.

2

When Protection Breeds Peril

3

Engineers Versus Ecologists

4

The Great Moderation's Hidden Flaw

5

When Safe Assets Turn Toxic

6

The Peltzman Effect in Action

7

Reclaiming Wisdom in a Foolproof World

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"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum
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"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC
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"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore
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"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

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@Raaaaaachelw
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"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum
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108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC
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254
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17

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore
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"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

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"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

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