Makers and takers : the rise of finance and the fall of American business

Eight years on from the biggest market meltdown since the Great Depression, the key lessons of the crisis of 2008 still remain unlearned—and our financial system is just as vulnerable as ever. Many of us know that our government failed to fix the banking system after the subprime mortgage crisis. But what few of us realize is how the misguided financial practices and philosophies that nearly toppled the global financial system have come to infiltrate ALL American businesses, putting us on a collision course for another cataclysmic meltdown. Drawing on in-depth reporting and exclusive interviews at the highest rungs of Wall Street and Washington, __Time__ assistant managing editor and economic columnist Rana Foroohar shows how the “financialization of America” - the trend by which finance and its way of thinking have come to reign supreme - is perpetuating Wall Street's reign over Main Street, widening the gap between rich and poor, and threatening the future of the American Dream. Policy makers get caught up in the details of regulating “Too Big To Fail” banks, but the problems in our market system go much broader and deeper than that. Consider that: · Thanks to 40 years of policy changes and bad decisions, only about 15 % of all the money in our market system actually ends up in the real economy – the rest stays within the closed loop of finance itself. · The financial sector takes a quarter of all corporate profits in this country while creating only 4 % of American jobs. · The tax code continues to favor debt over equity, making it easier for companies to hoard cash overseas rather than reinvest it on our shores. · Our biggest and most profitable corporations are investing more money in stock buybacks than in research and innovation. · And, still, the majority of the financial regulations promised after the 2008 meltdown have yet come to pass, thanks to cozy relationship between our lawmakers and the country’s wealthiest financiers. Exploring these forces, which have have led American businesses to favor balancing-sheet engineering over the actual kind and the pursuit of short-term corporate profits over job creation, Foroohar shows how financialization has so gravely harmed our society, and why reversing this trend is of grave importance to us all. Through colorful stories of both "Takers” and "Makers,” she’ll reveal how we change the system for a better and more sustainable shared economic future. Eight Years On From The Biggest Market Meltdown Since The Great Depression, The Key Lessons Of The Crisis Of 2008 Still Remain Unlearned--and Our Financial System Is Just As Vulnerable As Ever. Many Of Us Know That Our Government Failed To Fix The Banking System After The Subprime Mortgage Crisis. But What Few Of Us Realize Is How The Misguided Financial Practices And Philosophies That Nearly Toppled The Global Financial System Have Come To Infiltrate All American Businesses, Putting Us On A Collision Course For Another Cataclysmic Meltdown. Drawing On In-depth Reporting And Exclusive Interviews At The Highest Rungs Of Wall Street And Washington, Time Assistant Managing Editor And Economic Columnist Rana Foroohar Shows How The Financialization Of America--the Trend By Which Finance And Its Way Of Thinking Have Come To Reign Supreme - Is Perpetuating Wall Street's Reign Over Main Street, Widening The Gap Between Rich And Poor, And Threatening The Future Of The American Dream.^ Policy Makers Get Caught Up In The Details Of Regulating Too Big To Fail Banks, But The Problems In Our Market System Go Much Broader And Deeper Than That. Consider That: · Thanks To 40 Years Of Policy Changes And Bad Decisions, Only About 15 % Of All The Money In Our Market System Actually Ends Up In The Real Economy - The Rest Stays Within The Closed Loop Of Finance Itself. · The Financial Sector Takes A Quarter Of All Corporate Profits In This Country While Creating Only 4 % Of American Jobs. · The Tax Code Continues To Favor Debt Over Equity, Making It Easier For Companies To Hoard Cash Overseas Rather Than Reinvest It On Our Shores. · Our Biggest And Most Profitable Corporations Are Investing More Money In Stock Buybacks Than In Research And Innovation. · And, Still, The Majority Of The Financial Regulations Promised After The 2008 Meltdown Have Yet Come To Pass, Thanks To Cozy Relationship Between Our Lawmakers And The Country's Wealthiest Financiers.^ Exploring These Forces, Which Have Have Led American Businesses To Favor Balancing-sheet Engineering Over The Actual Kind And The Pursuit Of Short-term Corporate Profits Over Job Creation, Foroohar Shows How Financialization Has So Gravely Harmed Our Society, And Why Reversing This Trend Is Of Grave Importance To Us All. Through Colorful Stories Of Both Takers And Makers, She'll Reveal How We Change The System For A Better And More Sustainable Shared Economic Future-- Award-winning Business Journalist Rana Foroohar Shows How The Shortsighted And Misguided Financial Practices That Nearly Toppled The Global Economy In 2008 Have Come To Infiltrate All Corners Of American Business--putting Us On A Dangerous Collision Course To Another Economic Meltdown That Will Make 2008 Look Like A Mere Blip In The Business Cycle-- The Rise Of Finance -- The Fall Of Business: Bean Counters Versus Car Guys--frederick Winslow Taylor, Robert Mcnamara, And The Financialization Of Industry -- What An Mba Won't Teach You: How Business Education Is Failing American Businesses -- Barbarians At The Gate: Apple, Carl Icahn, And The Rise Of Shareholder Activism -- We're All Bankers Now: Ge And The Story Of How American Business Came To Emulate Finance -- Financial Weapons Of Mass Destruction: Commodities, Derivatives, And How Wall Street Created A Food Crisis -- When Wall Street Owns Main Street: Private Equity, Shadow Banking, And How Finance Reaped The Benefits Of The Housing Recovery -- The End Of Retirement: How Wall Street Ate Our Nest Eggs -- The Artful Dodgers: How Our Tax Code Rewards The Takers Instead F The Makers -- The Revolving Door: How Washington Favors Wall Street Over Main Street -- How To Put Finance Back In Service To Business And Society. Rana Foroohar. Includes Bibliographical References (pages 331-375) And Index. "Eight years on from the biggest market meltdown since the Great Depression, the key lessons of the crisis of 2008 still remain unlearned--and our financial system is just as vulnerable as ever. Many of us know that our government failed to fix the banking system after the subprime mortgage crisis. But what few of us realize is how the misguided financial practices and philosophies that nearly toppled the global financial system have come to infiltrate ALL American businesses, putting us on a collision course for another cataclysmic meltdown. Drawing on in-depth reporting and exclusive interviews at the highest rungs of Wall Street and Washington, Time assistant managing editor and economic columnist Rana Foroohar shows how the "financialization of America" - the trend by which finance and its way of thinking have come to reign supreme - is perpetuating Wall Street's reign over Main Street, widening the gap between rich and poor, and threatening the future of the American Dream. Policy makers get caught up in the details of regulating "Too Big To Fail" banks, but the problems in our market system go much broader and deeper than that. Consider that: · Thanks to 40 years of policy changes and bad decisions, only about 15 % of all the money in our market system actually ends up in the real economy - the rest stays within the closed loop of finance itself. · The financial sector takes a quarter of all corporate profits in this country while creating only 4 % of American jobs. · The tax code continues to favor debt over equity, making it easier for companies to hoard cash overseas rather than reinvest it on our shores. · Our biggest and most profitable corporations are investing more money in stock buybacks than in research and innovation. · And, still, the majority of the financial regulations promised after the 2008 meltdown have yet come to pass, thanks to cozy relationship between our lawmakers and the country's wealthiest financiers. Exploring these forces, which have have led American businesses to favor balancing-sheet engineering over the actual kind and the pursuit of short-term corporate profits over job creation, Foroohar shows how financialization has so gravely harmed our society, and why reversing this trend is of grave importance to us all. Through colorful stories of both "Takers" and "Makers," she'll reveal how we change the system for a better and more sustainable shared economic future"-- "Award-winning business journalist Rana Foroohar shows how the shortsighted and misguided financial practices that nearly toppled the global economy in 2008 have come to infiltrate all corners of American business--putting us on a dangerous collision course to another economic meltdown that will make 2008 look like a mere blip in the business cycle"-- "Eight years on from the biggest market meltdown since the Great Depression, the key lessons of the crisis of 2008 still remain unlearned--and our financial system is just as vulnerable as ever. Many of us know that our government failed to fix the banking system after the subprime mortgage crisis. But what few of us realize is how the misguided financial practices and philosophies that nearly toppled the global financial system have come to infiltrate ALL American businesses, putting us on a collision course for another cataclysmic meltdown. Drawing on in-depth reporting and exclusive interviews at the highest rungs of Wall Street and Washington, Time assistant managing editor and economic columnist Rana Foroohar shows how the "financialization of America"--The trend by which finance and its way of thinking have come to reign supreme - is perpetuating Wall Street's reign over Main Street, widening the gap between rich and poor, and threatening the future of the American Dream. Policy makers get caught up in the details of regulating "Too Big To Fail" banks, but the problems in our market system go much broader and deeper than that. Consider that: & middot; Thanks to 40 years of policy changes and bad decisions, only about 15 % of all the money in our market system actually ends up in the real economy - the rest stays within the closed loop of finance itself. & middot; The financial sector takes a quarter of all corporate profits in this country while creating only 4 % of American jobs. & middot; The tax code continues to favor debt over equity, making it easier for companies to hoard cash overseas rather than reinvest it on our shores. & middot; Our biggest and most profitable corporations are investing more money in stock buybacks than in research and innovation. & middot; And, still, the majority of the financial regulations promised after the 2008 meltdown have yet come to pass, thanks to cozy relationship between our lawmakers and the country's wealthiest financiers. Exploring these forces, which have have led American businesses to favor balancing-sheet engineering over the actual kind and the pursuit of short-term corporate profits over job creation, Foroohar shows how financialization has so gravely harmed our society, and why reversing this trend is of grave importance to us all. Through colorful stories of both "Takers" and "Makers," she'll reveal how we change the system for a better and more sustainable shared economic future" Is Wall Street bad for Main Street America? "A well-told exploration of why our current economy is leaving too many behind." —The New York Times In looking at the forces that shaped the 2016 presidential election, one thing is clear: much of the population believes that our economic system is rigged to enrich the privileged elites at the expense of hard-working Americans. This is a belief held equally on both sides of political spectrum, and it seems only to be gaining momentum. A key reason, says Financial Times columnist Rana Foroohar, is the fact that Wall Street is no longer supporting Main Street businesses that create the jobs for the middle and working class. She draws on in-depth reporting and interviews at the highest rungs of business and government to show how the “financialization of America”—the phenomenon by which finance and its way of thinking have come to dominate every corner of business—is threatening the American Dream. Now updated with new material explaining how our corrupted financial sys­tem propelled Donald Trump to power, Makers and Takers explores the confluence of forces that has led American businesses to favor balance-sheet engineering over the actual kind, greed over growth, and short-term profits over putting people to work. From the cozy relationship between Wall Street and Washington, to a tax code designed to benefit wealthy individuals and corporations, to forty years of bad policy decisions, she shows why so many Americans have lost trust in the sys­tem, and why it matters urgently to us all. Through colorful stories of both “Takers,” those stifling job creation while lining their own pockets, and “Makers,” businesses serving the real economy, Foroohar shows how we can reverse these trends for a better path forward. Eight full years later, the key lessons from the biggest financial downturn since the Great Depression still remain unlearned. But not only do the misguided financial practices that nearly toppled the global economy still run rampant on Wall St, today they have come to infiltrate ALL of American business, not only putting us on course for another financial meltdown, but just as importantly, a less prosperous economic future. Drawing on in-depth reporting and exclusive interviews at the highest rungs of Wall Street and Washington, Time Economic Columnist Rana Foroohar shows how the "financialization of America" - the trend by which finance and its way of thinking have come to reign supreme in America - is perpetuating Wall Street's reign over Main Street; slowing growth, flattening wages, widening the gap between rich and poor, and threatening the future of the American Dream. Consider that finance takes nearly a third of all corporate profits in this country,... "Award-winning business journalist Rana Foroohar shows how the shortsighted and misguided financial practices that nearly toppled the global economy in 2008 have come to infiltrate all corners of American business--putting us on a dangerous collision course to another economic meltdown that will make 2008 look like a mere blip in the business cycle"-- Provided by publisher