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Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
In his acclaimed book American Theocracy, Kevin Phillips warned of the perilous interaction of debt, financial recklessness, and the spiking cost (and growing scarcity) of oil- warnings that are proving to be frighteningly accurate. Now, in his most significant and timely book yet, Phillips takes the full measure of this crisis. They are a part of what he calls "bad m...more
Paperback, 352 pages
Published
March 31st 2009
by Penguin (Non-Classics)
(first published April 1st 2008)
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Devastating critique of the U.S.
Many readers already admire Kevin Phillips’s previous books, with their incisive analysis of U.S. politics. In this treatise, published just before the 2008 presidential election, his main concerns are the dangerous dominance of the financial sector in the U.S. economy and the fiscal implications of peak oil. Phillips covers many other hazards, from securitization to the real estate bubble. He provides historical background to explain modern financial ...more
Many readers already admire Kevin Phillips’s previous books, with their incisive analysis of U.S. politics. In this treatise, published just before the 2008 presidential election, his main concerns are the dangerous dominance of the financial sector in the U.S. economy and the fiscal implications of peak oil. Phillips covers many other hazards, from securitization to the real estate bubble. He provides historical background to explain modern financial ...more
The United States currently enjoys the status of the premier economic and military power in the world. It has not always been this way, and it must eventually end. But I don't think most of us realize that, as author Kevin Phillips argues, decline may be just around the corner. The housing and credit crisis, converging with the specter of peak oil, are two of the central problems for the U.S. economy that together combine for a bleak prognosis.
The housing and credit crisis finds its orig...more
The housing and credit crisis finds its orig...more
"The potential U.S. embarrassment, which this chapter must weigh, is whether the emergency of a reckless, hubris-driven financial sector in early-twenty-first-century America is a sunset phenomenon like the lesser versions of Edwardian and pre-1914 Britain, eighteenth-century Holland, and early-seventeenth-century Spain, economically centered on the gold and silver entrepot of Seville and its port of Cadiz." (p. 185)
What does this mean?
This statement means that...more
What does this mean?
This statement means that...more
My buddy Sue B. recommended this author over the summer, (2008). I couldn't find anything at the library other than this one and had to put it on hold and wait. Just got it a few weeks ago and, wow. What a difference a few months make. If I'd read this over the summer my eyes would have rolled back in my head and stayed there (!) as I tried to absorb the now all too familiar terms; securitization of risk, credit default swaps, tranches, or derivatives. Reading this book soon after the swoon in t...more
I've read other books by Phillips, which both adds to my understanding of his arguments and increases my dislike of his writing style. He makes some very good points about why the US is looking at a dim political and economic future, but he fails to account for the power of the US military and its alliances across the globe.
An interesting history exploring some of the root causes of our current economic situation. Explores over-valuation of derivatives and their economic errosive nature as well as the politics that have perpetually influenced and flawed the economic process and the downfall of capitalism. Interesting perspective on the huge impact of individual debt, the perpetuation of that debt and media's consistent poo-poohing of that debt. Great evaluation on the political relationships that have corroded our ...more
An analysis of the credit crunch and financial crisis of 2007 onwards. recent history is an interesting topic as perspective changes rapidly and this was written in 2008 i.e. pre Obama.
phillips examines the linked issues of the dollar, oil and the housing bubble and sets these in the context of similar historical crises that did for the Dutch, Spanish and British empires and postulates that similar is on the cards for the US in the 2000s. The evidence is gloomy!
Oil is cl...more
phillips examines the linked issues of the dollar, oil and the housing bubble and sets these in the context of similar historical crises that did for the Dutch, Spanish and British empires and postulates that similar is on the cards for the US in the 2000s. The evidence is gloomy!
Oil is cl...more
This book brings to mind two catch phrases from the character Dr. Smith on TV's "Lost in Space".
"We're doomed! Doomed!" and "Oh the pain, the pain!"
Apparently according to Phillips the US is one big debtor nation that as been just barely surviving on tricky finances. We have very little manufacturing and services are being placed offshore. The powers that be think this country can be run like one big Ponzi scheme. Well, it can't and we are...more
"We're doomed! Doomed!" and "Oh the pain, the pain!"
Apparently according to Phillips the US is one big debtor nation that as been just barely surviving on tricky finances. We have very little manufacturing and services are being placed offshore. The powers that be think this country can be run like one big Ponzi scheme. Well, it can't and we are...more
This book gave me a much better understanding of the current economic troubles the US is facing. Issues that seemed very foggy in 2008 are now clear. The author presents a clear argument for how the financial industry was the primary catalyst for the recession we entered in 2008. He also presents a gloomy picture of our dependence on oil and its relationship to the dollar. Both political parties are indicted in the failure both to regulate the financial industry and to present Americans with a c...more
Economics and finance are outside my field, so I can't make any solid claims about how this book stacks up compared to others. I can claim that this is the most accessible and readable book I've come across yet on the topic. To be more precise, the several topics, as Phillips ties together several intertwined threads related to international economics and finance. Perhaps most notable and interesting for today are the chapters on oil and "Bullnomics" in light of current events. But rat...more
Wonderful book. Long gimlet-eyed in Goshen, the irrepressible Phillips has lived to see his predictions of doom for the hyperfinancialized US economy come to pass. This book chronicles the last gasps of decadence in the bubble economy. It also tells a grand narrative connecting the decline of the US to other victims of self-inflicted imperial overreach.
The only flaw in the book is its cynicism . . . .but even this mood may well be vindicated by Obama's hopelessly centrist econom...more
The only flaw in the book is its cynicism . . . .but even this mood may well be vindicated by Obama's hopelessly centrist econom...more
George Thomas
rated it
·
review of another edition
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review of another edition
Recommends it for:
My Dad and Father in Law
Recommended to George by:
Bill Moyers from his interview with Author Kevin Phillips
Read this book on the plane to/from Spain - check out some cool sights traveling from Madrid to Bilbao to Barcelona, with lots of small towns in between.
Kevin Phillips covers much more than just how Wall Street went crazy packaging American private debt with structured finance innovations that encapsulates the sub-prime housing market as just one aspect. This book also does an interesting job correlating the zenith of earlier international superpowers, specifically Spanish, Dutch, ...more
Kevin Phillips covers much more than just how Wall Street went crazy packaging American private debt with structured finance innovations that encapsulates the sub-prime housing market as just one aspect. This book also does an interesting job correlating the zenith of earlier international superpowers, specifically Spanish, Dutch, ...more
If, like me, you aren't strong on financial/econ/poli sci, this book will be a challenging, yet relevant and worthwhile read. The foresight that Phillips has into the workings of our financial and government sectors is spot on. His reviews of historic precedent makes one question if we are indeed the next Rome. While not entirely gloom and doom, Phillips brings an awareness of the precarious situation in which we find our nation, and the challenges that lie ahead for the next administration. ...more
I became interested in the book when I saw Phillips on Bill Moyers, and Moyers offered a strong endorsement, saying that this was the best thing out there to help understand what was happening in the financial crisis. From what I have seen, tough sledding and all, he was right. A better title, might have been Bad, Worse, Worst Money.
This is a very thoughtful, information-rich look at the shaky underpinnings of the contemporary American, economy. Our current precarious position is no...more
This is a very thoughtful, information-rich look at the shaky underpinnings of the contemporary American, economy. Our current precarious position is no...more
This book is both prescient and dated. It covers the credit crisis up the end of 2007 and correctly forecast the credit problems in the fall of 2008.
Kevin Phillips is also a policy wonk and his tendency is to focus general political realities rather than just finance. Which is often a good thing, but finance viewed in isolation can be a stifling view.
Phillips makes every attempt to make his subject readable but this is still a chart-heavy book. I agree with his approac...more
Kevin Phillips is also a policy wonk and his tendency is to focus general political realities rather than just finance. Which is often a good thing, but finance viewed in isolation can be a stifling view.
Phillips makes every attempt to make his subject readable but this is still a chart-heavy book. I agree with his approac...more
Phillips discusses several financial topics while arguing that the United States is heading towards a complete economic collapse. He compares the tremendous expansion of America's financial sector to that of other historical world powers (such as the British and Dutch) shortly before those powers collapsed.
Unfortunately, Phillips chose to try and one-up Krugman in shrillness. More importantly, enormous passages were falsified or made irrelevant within a year of publication.
...more
Unfortunately, Phillips chose to try and one-up Krugman in shrillness. More importantly, enormous passages were falsified or made irrelevant within a year of publication.
...more
Everything I've read by Kevin Phillips I've liked, and this book is no exception. The thesis of the book is that when empires enter their waning years, finance replaces manufacturing and trade as the mainstay of the empire's economy; and as finance engages in ever more risky speculation in order to make money the bottom eventually falls out. In this regard Phillips compares the US economy to the economies of Spain, Holland, and England in the waning days of their empires. And there is no doub...more
"American Theocracy, Kevin Phillips warned us of the perilous interaction of debt, financial recklessness, and the increasing cost of scarce oil. The current housing and mortgage debacle is proof once more of Phillips’s prescience, and only the first harbinger of a national crisis. In Bad Money, Phillips describes the consequences of our misguided economic policies, our mounting debt, our collapsing housing market, our threatened oil, and the end of American domination of world markets. Am...more
Not at all a fun read in fact I had to force myself to stay awake. But I wanted to take a pass at understanding the economic meltdown we're in and Phillips is a savvy guy I see on Bill Moyers and like. Greed is not so shocking but it is shocking to read how the regulatory agencies and ratings agencies and the government in general abetted bad practises and ignored blatant warning signs of disaster. Well written requires lots of concentration to follow Phillips discussion.
Cindy
rated it
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review of another edition
·
review of another edition
Recommends it for:
anyone with a concern for tomorrow
Shelves:
political
Anyone with a house and or bank account will be pretty perturbed after reading this book. Kevin Phillips predicts that it may not be 30-40 years before the US recovers from the mortgage/personal debt/Iraq chaos/dollar drop and oil crisis currently affecting the average American, but it will be close. Our upcoming presidential election could tilt us back on track or completely over the edge. The OPEC oil countries combined with the emerging Asian, Russian and South American economical gains co...more
I'm a big fan of Kevin Phillips, but this one disappointed me. It seemed rushed at times (perhaps because his publisher wanted the book to be one of the first "financial crisis" books to hit the shelves?) and his flirtation with the peak oil theory was intriguing but ultimately unconvincing. Not surprisingly he is at his best when describing the politics of the bailouts and the potential for political realignments.
A extension of the financialization theme from the book American Theocracy inspired by the recent unraveling of the subprime mortgage market that demonstrates that theme, and the understanding that there will be more to come as the United States continues to become more debt-ridden and finance becomes an even greater share of the GDP. It is already the largest part of the GDP. History shows that powers that shift from being producers to rentiers soon become ex-powers. Nations that live beyond...more
Okay, we're all going to hell in a hand basket. Oil, bad mortgage loans, banking system that is not transparent. The Euro or the Yen will replace the dollar as the currency of choice. Our standard of living is actually falling. Education doesn't really help. Gloom and doom. Maybe it's all correct, but somehow or other I believe USA will muddle through for a little while longer.
He has a piece up at TPM that is very good, in response to recent comments expressing false optimism about the US economy. He lists about 12 darts each of which is sharp-tipped enough to completely deflate such foolish perceptions. Brutal. And he mentions that an updated version of this book is out or coming out soon. Will be looking forward to reading that!
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Read this when the economy started sliding. Phillips is very smart, and I fear that he is right that this will be a very long term downturn. His main thesis is that the financial services industry became too large a part of our GDP, and since it doesn't actually produce anything other than paper wealth, it was not a long term source of growth.
This book is a continuation of the themes the author developed in "Wealth and Democracy" and "American Theocracy":
- rise in religious fundamentalism
- decline in energy reserves
- a bloated financial services sector
- rise in private and public debt
- imperialism
- a falling dollar against global currency
These factors have historical parallels that can be seen in the rise and eventual fall of past global superpowers such as those in the Ne...more
- rise in religious fundamentalism
- decline in energy reserves
- a bloated financial services sector
- rise in private and public debt
- imperialism
- a falling dollar against global currency
These factors have historical parallels that can be seen in the rise and eventual fall of past global superpowers such as those in the Ne...more
This latest of Phillips' Jeremiads was exceptionally well-timed: while he has a reputation of something of a Cassandra, ever forecasting doom for American hegemony, in this case he certainly proved worthy of the moniker, since, as many forget, Cassandra did actually possess the gift of prophecy along with the curse that her prophecies would never be believed.
Written after the sub-prime crisis hit in August of 2007, the book very accurately took measure of its full seriousness and wha...more
Written after the sub-prime crisis hit in August of 2007, the book very accurately took measure of its full seriousness and wha...more
A truly disheartening book, but very useful reading to understand the roots of the current financial crisis.
And lest you be partisan, this guy was a key Republican strategist in, I believe, the Nixon era. So while he bashes the current administration, he does so objectively.
And lest you be partisan, this guy was a key Republican strategist in, I believe, the Nixon era. So while he bashes the current administration, he does so objectively.
Phillips was a little less focused than I'd prefer. He made some interesting links to the flaws in the US financial policy and the potential energy crisis of peak oil, a connection I've never seen drawn elsewhere, but the transition wasn't very well conducted. Nonetheless, Phillips does a fine job of showing how the focus on financial services as the engine of the US economy, and the US policy to aid the financial industry for the last several decades, has lead us to the economic crisis, may wel...more
Well it looks like American capitalism is over. Start your centralized planning now. This book is very pessimistic about the future of American finance. Lots of dwelling on the obvious problems associated with MBS, CDO and CDS markets. I thought the interesting chapters in this book were related to energy and peak oil and oil's relation to valuation of the dollar. Overall, the book gets a 3 star rating. It likes to describe lots of problems that are out there in US finance these days, but ...more
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Kevin Phillips is an American writer and commentator, largely on politics, economics, and history. Formerly a Republican Party strategist, Phillips has become disaffected with his former party over the last two decades, and is now one of its harshest critics. He is a regular contributor to the Los Angeles Times and National Public Radio, and is a political analyst on PBS' NOW with Bill Moyers.
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