Bailout Nation, with New Post-Crisis Update: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy

I have read several books on the economic crisis that has gripped the country over the past 3-4 years and I found this book to be not only the most informative but entertaining. The author has a knack, or gift, to make complicated financial subjects like credit default swaps, derivatives, collaterized debt obligation etc. very easy to understand particularly if you are not too familar with complex finacial terminology. While the author provides a great introduction on original government subsidies like railroads, some for the greater good, accelerating to the first major bailout Lockheed Martin in 1971 and later Chrysler and later yet, Savings and Loans. As the author notes, these bailouts set the potential for government and the tax payer to take on great liabilities. What is also excellent is the authors review and discussion of unintendede consequences,, what is the effect in the long run. For example, although hard to lose so many jobs, if Chrysler failed, what would the effect have been on Ford, GM and UAW? Would they all ahve been more inclined to be more efficient, in design and build quality cars, reasonable wages and benefits?. He also covers the creation of the Fed and the course it has taken particularly Alan Greenspan and the actions by Presidents as far back a s Reagan for de-regulaton. The book is full of great quotes by those directly involved such as Greenspan's quote that derivatives need not be regulated and his belief that the market self corrects (Adam Smith's invisible hand). The author includes at least one historical quote to start each chapter that can often amuse the reader like Sam Rayburn's "A jackhouse can knock a barn down but it takes a carpenter to build one". The author certainly gets into the firms that failed and or got bailouts; Citibank, Leahman Brosters, Bear Stearns and perhaps most facinating on how the once solid AIG self destructed. Goldman Sachs role is quite fascinating in how they interacted with AIG to protect their undervalued investments in real estate to insure their investments. The authors own insights and free use of his opinions are informative and even entertaining. The author closes with who is responsible and he has quite a diversivied list from Robert Rubin to Phil Graham who spurred de-regulation that open the gates for finacial mischief. Depressing that those that engoneered our massive bailut have direct ties to the industry they were bailing out and that even under Obama, the connections are still there. The author even includes suggestions from a number of finacial experts to help resolve the problems at the end. Consistent with the over vew of other authors that those approving home owner loans were more concerned that the loan lasted long enough to pass on to who purchased them and then these large finacial companies were eager to package them virtually without examination, virtually like buying a car without looking under the hood or taking a test drive. Well told, excellent explanations and I look forward to the updated version and the author's next book.

do You Find Yourself Wondering: How Did We Get Here? How Did The United States Of America Get Into Such A Predicament Whereby In One Year, 2008, The Financial System Nearly Vaporized, The Stock Market Crashed, Real Estate Tanked, And Major Corporations Were Being Bailed Out. . . .how Did Our Great Country, A Bastion Of Capitalism, Devolve Into A Bailout Nation Where The Gains Were Privatized, But The Losses Were Socialized?

—from The Foreword By Bill Fleckenstein

in bailout Nation, Barry Ritholtz, Author Of The Popular Finance Blog Www.ritholtz.com/blog/, Deftly Mixes Financial History With An Insider's Knowledge Of Modern Finance To Reveal How We've Arrived At One Of The Worst Economic Crises Ever. Engaging And Informative, This Book Clearly Shows How Years Of Trying To Control The Economy With Easy Money Has Finally Caught Up With The United States And How The Government's Practice Of Repeatedly Rescuing Wall Street—as Well As Other Industries And Organizations—has Come Back To Bite Them.

divided Into Five Compelling Parts, This Timely Guide Opens With A Brief History Of Bailouts, Detailing Their Particular Patterns And Unintended Consequences. From Here, It Quickly Moves On To Reveal The Events, Individuals, And Institutions That Have Shaped Our Current Situation. You'll See How Various Government Interventions—in Individual Companies Such As Lockheed During The 1970s, In Specific Sectors Such As Banking In The Early 1990s, And Eventually, Entire Markets With The Rescue Of Stocks In 2000—opened Up A Pandora's Box. You'll Also Discover How The Misguided Philosophies Of Many Players, From Fed Chairmen And Presidents To Senators And Treasury Secretaries, Promoted The Massive Meltdown That Has Engulfed Our Global Economy.

ritholtz Leaves No Stone Unturned, As He Breaks Down How The Federal Reserve's Interest-rate Targeting Policies As Well As A Condition Known As Moral Hazard—the Belief That You Won't Bear The Full Consequences Of Your Actions—perpetuated The Reckless Financial Risk Taking That Has Pushed Us To The Brink. Ritholtz Also Takes Some Of The Biggest Wall Street Firms—along With Their Enablers, The Ratings Agencies—to Task. Page By Page, You'll Learn How The Repeal Of Certain Regulations Allowed Banks To Merge Into Unruly Financial Behemoths, While Unproven Investment Vehicles, Including Collateralized Debt Obligations (cdos) And Credit Default Swaps (cdss), Wreaked Havoc On Both The Credit And Housing Markets.

the United States Has Abandoned Its Capitalist Roots And Become A Bailout Nation. The Implications Of This Are Significant And Far-reaching. If You Intend On Navigating Today's Treacherous Terrain, It Would Be Wise To Understand How We Got Here And What You Need To Get Ahead. Scathing, But Fair, bailout Nation Puts This Financial Debacle In Perspective—through Discussions Of Past Miscues And An Exploration Of Solutions Being Proposed-and Offers A Voice Of Reason During These Uncertain Economic Times. 

Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 1 Contents 11 Foreword 15 Acknowledgments 19 Introduction: Bailout Nation 23 Part I: A BRIEF HISTORY OF BAILOUTS 29 Chapter 1: A Brief History of Bailouts 31 Chapter 2: The Creation of the Federal Reserve, and Its Role in Creating Our Bailout Nation 35 Chapter 3: Pre-Bailout Nation (1860–1942) 43 Chapter 4: Industrial-Era Bailouts (1971–1995) 55 INTERMEZZO: A Pattern Emerges 67 Part II: THE MODERN ERA OF BAILOUTS 73 Chapter 5: Stock Market Bailouts (1987–1995) 75 Chapter 6: The Irrational Exuberance Era (1996–1999) 85 Chapter 7: The Tech Wreck (2000–2003) 97 Chapter 8: The Backwards, Rate-Driven Economy 111 INTERMEZZO: A Brief History of Finance and Credit 123 Chapter 9: The Mad Scramble for Yield 127 Part III: MARKET FAILURE 139 Chapter 10: The Machinery of Subprime 141 INTERMEZZO: A Memo Found in the Street: Uncle Sam the Enabler 152 Chapter 11: Radical Deregulation, Nonfeasance 155 Chapter 12: Strange Connections, Unintended Consequences 171 Chapter 13: Moral Hazard: Why Bailouts Cause Future Problems 183 Part IV: BAILOUT NATION 195 Chapter 14: 2008: Suicide by Democracy 197 Chapter 15: The Fall of Bear Stearns 207 Chapter 16: Dot-Com Penis Envy 217 Chapter 17: Year of the Bailout, Part I: The Notorious AIG 225 Chapter 18: The Year of the Bailout, Part II: Too Big to Succeed? 233 INTERMEZZO: Idiots Fiddle While Rome Burns 248 Part V: POST-BAILOUT NATION 251 Chapter 19: Casting Blame 253 Chapter 20: Misplaced Fault 273 Mortgage Interest Deduction 273 Naked Shorting 274 Community Reinvestment Act (CRA) 275 Fannie Mae and Freddie Mac, aka “Phonie & Fraudie” 279 Chapter 21: The Virtues of Foreclosure 285 Chapter 22: Casino Capitalism 295 Postscript: Advice to a New President 309 Notes 319 Index 337

An engaging look at what led to the financial turmoil we now find ourselves in

Bailout Nation offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and a well-established industry pundit, this book skillfully explores how the United States evolved from a rugged independent nation to a soft Bailout Nation-where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times.

Entertaining and informative, this book clearly shows you how years of trying to control the economy with easy money has finally caught up with the federal government and how its practice of repeatedly rescuing Wall Street has come back to bite them.

• The definitive book on the financial crisis of 2008
• Names the culprits responsible for this tragedy-from financial regulators to politicians
• Shows how each bailout throughout modern history has impacted what happened in the future
• Examines why the consumer/taxpayer is left suffering in an economy of bubbles, bailouts, and possible inflation
• Ritholtz operates a hugely popular blog, www.ritholtz.com/blog

Scathing, but fair, Bailout Nation is a voice of reason in these uncertain economic times.

An engaging look at what led to the financial turmoil we now find ourselves in

Bailout Nation offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and a well-established industry pundit, this book skillfully explores how the United States evolved from a rugged independent nation to a soft Bailout Nation -where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times.

Entertaining and informative, this book clearly shows you how years of trying to control the economy with easy money has finally caught up with the federal government and how its practice of repeatedly rescuing Wall Street has come back to bite them.

• The definitive book on the financial crisis of 2008
• Names the culprits responsible for this tragedy-from financial regulators to politicians
• Shows how each bailout throughout modern history has impacted what happened in the future
• Examines why the consumer/taxpayer is left suffering in an economy of bubbles, bailouts, and possible inflation
• Ritholtz operates a hugely popular blog, www.ritholtz.com/blog

Scathing, but fair, Bailout Nation is a voice of reason in these uncertain economic times.

An engaging look at what led to the financial turmoil we now find ourselves in Bailout Nation offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and a well-established industry pundit, this book skillfully explores how the United States evolved from a rugged independent nation to a soft Bailout Nation -where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times. Entertaining and informative, this book clearly shows you how years of trying to control the economy with easy money has finally caught up with the federal government and how its practice of repeatedly rescuing Wall Street has come back to bite them. The definitive book on the financial crisis of 2008 Names the culprits responsible for this tragedy-from financial regulators to politicians Shows how each bailout throughout modern history has impacted what happened in the future Examines why the consumer/taxpayer is left suffering in an economy of bubbles, bailouts, and possible inflation Ritholtz operates a hugely popular blog, www.ritholtz.com/blog Scathing, but fair, Bailout Nation is a voice of reason in these uncertain economic times. Provides a clear look at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Ritholtz explores how the United States evolved from a rugged independent nation to a place where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times Bailout Nation is a scathing expose on the politicians, financial leaders, and regulators responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and media commentators, the book shows how ideology has been turned on its head and how the U.S. Examines how reckless and irresponsible practices by corporations for many years has led to the financial crises facing the country today and the cost this will have for the taxpayers and the world as a result of the Fed's decision to shift the risk onto them. Original. Presents a brief history of bailouts, describes how the current economic crisis has unfolded, and argues that misguided philosophies and government interventions have lead to an economic meltdown of the world economy