James's Reviews > Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy

Bailout Nation by Barry Ritholtz
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's review
Feb 16, 2012

liked it
bookshelves: finance
Read in February, 2012

There are some other books that cover the GFC better,
but this is an OK effort.

He mentions how the SEC in 2005 let investment banks increase leverage from 12 to 1 to 40 to 1!!!

And how the Boskin commission in 1995 gutted how the CPI was calculated,
letting the FED think there isn't much inflation,
when there really is.

In the middle of a book full of snarky writing, he even had a joke:
"This has been even worse than my first divorce,
I've lost half my net worth but I still have my wife."

He shows how stock options corrupt management.

And he gives a list of who is most responsible for the GFC,
starting with idiot savant Greenspan,
Senator Phil Gramm
and the 3 rating agencies.

Some of his ideas are half baked,
he doesn't appreciate how replacement cost and rental income are more important
in determining whether housing is over or under priced,
than young people's income.

I think all of the reading I've done the last few years about the GFC
has paid off, the stock market is paying better than ever.

At an intellectual level, I'm outraged at how rotten this country is,
but emotionally, I feel warm and happy.


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