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Other People's Money: Inside the Housing Crisis and the Demise of the Greatest Real Estate Deal Ever Made
In just over three years, real estate giant Tishman Speyer and its partner, BlackRock, lost billions of investors' dollars on a single deal. The "New York Times" reporter who first broke the story of the sale of Stuyvesant Town-Peter Cooper Village takes readers inside the most spectacular failure in real estate history, using this single deal as a lens to see how and why the real estate crisis happened.
How did the smartest people in real estate lose billions in one single deal? How did the Church of England, the California public employees' pension fund, and the Singapore government lose more than one billion dollars combined investing in a middle-class housing complex in New York City? How did MetLife make three billion dollars on the deal without any repercussions from a historically racist policy of housing segregation? And how did nine residents of a sleepy enclave in New York City win one of the most unlikely lawsuits in the history of real estate law?
Not only does "Other People's Money" answer those questions, it also explains the current recession in stark, clear detail while providing riveting first-person accounts of the titanic failure of the real estate industry to see that a recession was coming. It's the definitive book on real estate during the bubble years--and what happened when that enormous bubble exploded.
How did the smartest people in real estate lose billions in one single deal? How did the Church of England, the California public employees' pension fund, and the Singapore government lose more than one billion dollars combined investing in a middle-class housing complex in New York City? How did MetLife make three billion dollars on the deal without any repercussions from a historically racist policy of housing segregation? And how did nine residents of a sleepy enclave in New York City win one of the most unlikely lawsuits in the history of real estate law?
Not only does "Other People's Money" answer those questions, it also explains the current recession in stark, clear detail while providing riveting first-person accounts of the titanic failure of the real estate industry to see that a recession was coming. It's the definitive book on real estate during the bubble years--and what happened when that enormous bubble exploded.
417 pages, Kindle Edition
First published April 4, 2013
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Displaying 1 - 30 of 45 reviews
April 8, 2014
Fair warning: If one is looking for wide-ranging analysis on the housing bubble/crisis, this most definitely is NOT your book. It's very specifically about "my hometown" … the Stuyvesant Town complex on the East Side of Manhattan, which borders First Avenue to the West, the East River to the East, 20th Street to the North, and 14th Street to the South. I can understand why Bagli and his publisher didn't want to insert the words Stuyvesant Town ("Huh…?") into the title, but to not have done it - given this book's focus - was a tad disingenuous. That said, I enjoyed it - and learned more than I thought I would - precisely because I went into reading it knowing that its focus would be Stuyvesant Town. One doesn't often get a chance to read a widely respected book of nonfiction about one's own specific place of birth and current residence. For others not that interested in Stuyvesant Town in particular (or for those wh ohad never heard of it until reading this review), I don't think this book will grab you.
May 14, 2015
The author could have, I think, benefited from a more conscientious editor; I noted a number of passages that were repeated a very short time after they had been expressed in a very slightly altered context - a minor irritant but notice. My bigger complaint stems from the sweep of the title not being lived up to in the narrative, which was really about prime New York real estate, specifically the Stuyvesant Town and Peter Cooper Village sales. That subject was treated in depth, and seemed to tell the situation well. I had expected a bit more of a linkage between that transaction and the rest of the housing crisis, but it seemed not to be.
June 28, 2022
I really enjoyed this book.
I found it an excellent analysis of the housing crisis.
Parts of this book was really infuriating to me.
Would recommend to learn more.
4.8/5
I found it an excellent analysis of the housing crisis.
Parts of this book was really infuriating to me.
Would recommend to learn more.
4.8/5
February 8, 2020
Good book to understand the madness of the commercial real estate market in the lead up to 2008-09 crises.
July 1, 2025
Interesting to see how the missteps described in the book have contributed to Tishman’s investing approach today.
October 29, 2013
The book can be best described as a case study in the Great Recession. There are a lot of different angles to the financial crisis of 2008 and the housing bubble was just one factor. To that end, Bagli's book is fascinating read. It is unnecessarily drawn out. In many places he is too detailed, such as describing the planning by rival factions seeking to buy ST/PCV in 2008. He would have done best to keep focusing attention on just the Tishman Speyer-Black Rock axis. The result of so many people was pretty overwhelming. Something else is lost in the detail, namely who were the key players and what were their roles? Aside from journalism student who went from 'opening Andrew Cuomo's mail' to head of Tishman Speyer (in that order), I really do not understand the other players.
Bagli also could have done a better job in placing the ST/PCV example into greater context. His description of the toxic mortgages was overly simple. Instead of mentioning the credit default swaps, he mentions other business terms, like bridge equity, and mezzanine loans which he briefly defines; but only in passing, so that when the terms show up twenty pages later, readers are left scratching their heads. A glossary would have helped. Also, this shows that the intended audience is not casual readers (or the residents of ST/PCV); but rather people in the financial services field, folks who understand the terms and know some of the people mentioned in the book.
There is no bias in the book. Unlike many authors, Bagli does not appear to savor the thought that so many institutions involved in the financial crisis collapsed. If anything, he is too generous in his treatment of shady bankers, consultants, financiers, and lawyers. The obvious villain of the book is Rob Speyer, who went from the mail room to the board room of a major real estate firm with no background in real estate. Nevertheless, Bagli does not denigrate Speyer or his father, whose involvement in the deal is clouded. It is an unusual position for a New York Times reporter, and shows he took extreme care to present a neutral position in the drama as an impartial observer.
There are many books available on the financial crisis of 2008. This book offers a detailed study on a small corner of the problem. Casual readers could gleam the full story of the book from the introduction. The rest of the book, simply gives more detail. The overall message is twofold. One, corporate culture shifted fundamentally in the 1980s through the 2000s. And two, access to virtually unlimited credit (other people's money) led to increasingly precarious financial deals that only a few folks were prescient enough to see were doomed from the start.
Bagli also could have done a better job in placing the ST/PCV example into greater context. His description of the toxic mortgages was overly simple. Instead of mentioning the credit default swaps, he mentions other business terms, like bridge equity, and mezzanine loans which he briefly defines; but only in passing, so that when the terms show up twenty pages later, readers are left scratching their heads. A glossary would have helped. Also, this shows that the intended audience is not casual readers (or the residents of ST/PCV); but rather people in the financial services field, folks who understand the terms and know some of the people mentioned in the book.
There is no bias in the book. Unlike many authors, Bagli does not appear to savor the thought that so many institutions involved in the financial crisis collapsed. If anything, he is too generous in his treatment of shady bankers, consultants, financiers, and lawyers. The obvious villain of the book is Rob Speyer, who went from the mail room to the board room of a major real estate firm with no background in real estate. Nevertheless, Bagli does not denigrate Speyer or his father, whose involvement in the deal is clouded. It is an unusual position for a New York Times reporter, and shows he took extreme care to present a neutral position in the drama as an impartial observer.
There are many books available on the financial crisis of 2008. This book offers a detailed study on a small corner of the problem. Casual readers could gleam the full story of the book from the introduction. The rest of the book, simply gives more detail. The overall message is twofold. One, corporate culture shifted fundamentally in the 1980s through the 2000s. And two, access to virtually unlimited credit (other people's money) led to increasingly precarious financial deals that only a few folks were prescient enough to see were doomed from the start.
May 10, 2016
This was an interesting if meandering book. I got the impression several times while reading the book that telling the story of the deal itself and its aftermath was not enough for an entire book and so it needed to be beefed up a bit.
The book goes into the history of the complex, which was fairly interesting – in particular the complex’s history of discrimination towards minority tenant applicants – but ultimately I felt it stalled the storyline for which I really read the book.
Looking back of course the deal was ridiculous; Tishman Speyer paid way too much money for the complex at the top of the market. What is frustrating is that Tishman Speyer and to a lesser extent BlackRock walked away largely unscathed. They both made significant money in fees that offset any money they lost that was invested in the deal.
The same can’t be said for the investors in the deal who lost all their money. For institutions like CalPERS and CalSTRS this is no small matter. As a result, CalPERS fired BlackRock and probably rightly so, despite BlackRock’s excellent track record leading up to that deal.
To anyone who works in the financial services industry, this scenario is not surprising. The people and firms managing the funds and doing the deals do a good job of limiting their downside exposure. Where the firms Tishman and BlackRock can be faulted however is not doing the proper due diligence on the complexes and their real revenue potential. The most astute analyses showed the complexes were worth nowhere near that much, and those investors who came to that conclusion smartly walked away. Only hubris, a lack of understanding of the residential real estate market, and the overall momentum of a booming real estate market would have justified so high a sale price.
Tishman and BlackRock did in part have unlucky timing. They bought at the absolute top of the market, right before the bottom fell out and the country entered a deep recession. As a result it was a doomed deal from the start as not only could they not convert apartments to market rates as they had anticipated, but occupancy rates fell precipitously as tenants lost jobs and could no longer afford their current rents.
Over the long term however, both Tishman Speyer and BlackRock were left unaffected. Both firms are still two of the biggest in their respective industries and continue to do significant deals around the world. That is fine, but what is more troubling is how the industry has been left largely unaffected as well. Appetite for risk has not really changed as the market has eventually turned around and the willingness to load on debt to increase the size of deals – and thus increase the amount of fees – has not lessened either.
The book goes into the history of the complex, which was fairly interesting – in particular the complex’s history of discrimination towards minority tenant applicants – but ultimately I felt it stalled the storyline for which I really read the book.
Looking back of course the deal was ridiculous; Tishman Speyer paid way too much money for the complex at the top of the market. What is frustrating is that Tishman Speyer and to a lesser extent BlackRock walked away largely unscathed. They both made significant money in fees that offset any money they lost that was invested in the deal.
The same can’t be said for the investors in the deal who lost all their money. For institutions like CalPERS and CalSTRS this is no small matter. As a result, CalPERS fired BlackRock and probably rightly so, despite BlackRock’s excellent track record leading up to that deal.
To anyone who works in the financial services industry, this scenario is not surprising. The people and firms managing the funds and doing the deals do a good job of limiting their downside exposure. Where the firms Tishman and BlackRock can be faulted however is not doing the proper due diligence on the complexes and their real revenue potential. The most astute analyses showed the complexes were worth nowhere near that much, and those investors who came to that conclusion smartly walked away. Only hubris, a lack of understanding of the residential real estate market, and the overall momentum of a booming real estate market would have justified so high a sale price.
Tishman and BlackRock did in part have unlucky timing. They bought at the absolute top of the market, right before the bottom fell out and the country entered a deep recession. As a result it was a doomed deal from the start as not only could they not convert apartments to market rates as they had anticipated, but occupancy rates fell precipitously as tenants lost jobs and could no longer afford their current rents.
Over the long term however, both Tishman Speyer and BlackRock were left unaffected. Both firms are still two of the biggest in their respective industries and continue to do significant deals around the world. That is fine, but what is more troubling is how the industry has been left largely unaffected as well. Appetite for risk has not really changed as the market has eventually turned around and the willingness to load on debt to increase the size of deals – and thus increase the amount of fees – has not lessened either.
November 25, 2022
This is a really fascinating read about the craziness occurring in New York real estate during the lead up to the 2008 financial crisis. The book dives deep into the history and 2006 sale of Stuyvesant Town and Peter Cooper Village, prime New York real estate comprised of 110 buildings spread across 80 contiguous acres south of midtown. The sale was the largest real estate transaction in the world at the time and it is mind blowing to read about all of the egos, overblown assumptions and creative financing that led to the winning bid and the destruction that followed.
I first read this book shortly after the financial crisis and it was interesting to go back and read it again several years later as a reminder of that time. However, I think the title is a little overreaching as the book isn’t really an all-encompassing overview of the housing crisis but rather an in-depth examination into one major transaction. Also, the book could have used a little more editing; it was really repetitive at times and various players and concepts seemed to be re-introduced and re-explained over and over.
If you’re looking for a tell-all on the housing crisis, this probably isn’t the book for you but it’s an enjoyable read if you’re interested in learning more about a super outrageous real estate transaction.
I first read this book shortly after the financial crisis and it was interesting to go back and read it again several years later as a reminder of that time. However, I think the title is a little overreaching as the book isn’t really an all-encompassing overview of the housing crisis but rather an in-depth examination into one major transaction. Also, the book could have used a little more editing; it was really repetitive at times and various players and concepts seemed to be re-introduced and re-explained over and over.
If you’re looking for a tell-all on the housing crisis, this probably isn’t the book for you but it’s an enjoyable read if you’re interested in learning more about a super outrageous real estate transaction.
November 13, 2013
This was a really well-written book chronicling the sale of Stuy-Town/Peter Cooper Village just before the real estate bubble burst in the late 2000s. The issues were explained clearly and concisely -- not to mention fairly. Bagli's a great writer (I love non-fiction books written by reporters, since they tend to be more accessible) and this is a must-read for anyone interested in real estate, housing policy or NYC politics.
The strengths of the book were the chapters focused on ST/PCV (as opposed to those that were more generally about the real estate bubble/financial crisis), but I do understand that the more general chapters are probably necessary for readers who aren't as familiar with the issues as I am (largely from having read The Big Short: Inside the Doomsday Machine not so long ago).
The only reason I'm giving it four instead of five stars is that the subject matter may be a bit too narrowly focused for the average reader, but I'd highly recommend it to anyone who thinks that the topic might be of interest.
The strengths of the book were the chapters focused on ST/PCV (as opposed to those that were more generally about the real estate bubble/financial crisis), but I do understand that the more general chapters are probably necessary for readers who aren't as familiar with the issues as I am (largely from having read The Big Short: Inside the Doomsday Machine not so long ago).
The only reason I'm giving it four instead of five stars is that the subject matter may be a bit too narrowly focused for the average reader, but I'd highly recommend it to anyone who thinks that the topic might be of interest.
December 29, 2025
This is a tight, workmanlike telling of the history of Stuyvesant Town and Peter Cooper Villages, the twin complexes on 80 acres in Manhattan which replaced the old Gas Tank district in 1943 and were proposed by MetLife and Mayor Fiorello LaGuardia as a bastion for the middle-class in Manhattan. The focus of the book, although not the sole one, is the 2006 deal lead by Rob Speyer of Tishman-Speyer that purchased the complex from MetLife for $5.4 billion, at the time the largest single real estate purchase in history. Eighty pecent came from debt-financing, especially a $3 billion first mortgage that was sold off into commercial mortgage-backed bonds by Wachovia and Merrill Lynch.
As Bagli points out, and as many have pointed out since, the deal was doomed from the start. The deal assumed that net income would more than double to over $200 million a year in just a few years. That assumed that much of the circa 11,000 apartments, that were rent-regulated for decades, would be transformed under a newish 1993 rent regulation law into market-level rents. That was foolhardy since MetLife had already been working on this since the early 2000s and had had little success. The situation was made worse of course by the 2008 market crash and then by a ruling in the J-51 or Roberts case, which stated that complexes that received tax-breaks such as J-51 could not deregulate apartments totally.
But even without the crisis and the court case, everything would have to have gone near perfectly to work out for the investors. Instead, the California pension funds had to lose their $600 billion equity investment entirely. Almost all mezzanine lenders were wiped out when the investment was turned over the trustees in early 2009. Tishman-Speyer lost a little because it had put in only a few tens of millions, and Wachovia and Merrill Lynch did great on fees.
Although the author tries to make this book a judgment on reckless capitalism and finance, in truth it was just one bad deal among a lot of otherwise successful ones by firms like Tishman-Speyer. But that deal, and the long history behind it, is portrayed in about as clear terms and about as clear a narrative as one could imagine for such a complicated topic. The author should be commended for his fine work.
As Bagli points out, and as many have pointed out since, the deal was doomed from the start. The deal assumed that net income would more than double to over $200 million a year in just a few years. That assumed that much of the circa 11,000 apartments, that were rent-regulated for decades, would be transformed under a newish 1993 rent regulation law into market-level rents. That was foolhardy since MetLife had already been working on this since the early 2000s and had had little success. The situation was made worse of course by the 2008 market crash and then by a ruling in the J-51 or Roberts case, which stated that complexes that received tax-breaks such as J-51 could not deregulate apartments totally.
But even without the crisis and the court case, everything would have to have gone near perfectly to work out for the investors. Instead, the California pension funds had to lose their $600 billion equity investment entirely. Almost all mezzanine lenders were wiped out when the investment was turned over the trustees in early 2009. Tishman-Speyer lost a little because it had put in only a few tens of millions, and Wachovia and Merrill Lynch did great on fees.
Although the author tries to make this book a judgment on reckless capitalism and finance, in truth it was just one bad deal among a lot of otherwise successful ones by firms like Tishman-Speyer. But that deal, and the long history behind it, is portrayed in about as clear terms and about as clear a narrative as one could imagine for such a complicated topic. The author should be commended for his fine work.
January 9, 2022
I think the other reviews do a good job pointing out some flaws in the book — like do we really need to know the anecdote of one real estate guy who misses a flight, or whatever — so let me just tell you about my experience in and around reading it.
This is the first book I’ve read about a real estate deal. Maybe the last? But who knows what my future holds.
I got it at a used bookstore because I thought I might like to read a book about a local residential building. And I really did enjoy learning more about Stuytown. It was immediately relevant, too — On an online dating app, I matched with someone who lives in Stuytown, so I could immediately impress them with the history of rent regulation & owners of the property they lived in. I’m going to meet them now, actually.
This is the first book I’ve read about a real estate deal. Maybe the last? But who knows what my future holds.
I got it at a used bookstore because I thought I might like to read a book about a local residential building. And I really did enjoy learning more about Stuytown. It was immediately relevant, too — On an online dating app, I matched with someone who lives in Stuytown, so I could immediately impress them with the history of rent regulation & owners of the property they lived in. I’m going to meet them now, actually.
February 10, 2019
An interesting peek into the obscure world of high-finance and real-estate that just goes to show how one-sided Wall St insiders have rigged the game to be. With windfalls beyond the dream of avarice when things go right but large losses for passive investors and tax payers when things don't while consumers, tenants, and workers become tragic collateral damage in this fast-paced game of greed, short-termism and financialization of everything.
Can be a little belaboring with excessive detail though.
Can be a little belaboring with excessive detail though.
September 7, 2023
In-depth research by Bagli and behind the scenes stories make this book a go to for a full history of the housing crash, and Commercial Real Estate in particle. This book should be required reading for anyone starting a career in CMBS as it points out all of the issues and warning signs leading up to the crash and how investors could have avoided them. It's longwinded as other reviewers have pointed out, but contains a ton of good stories and great information about the era and crash.
January 15, 2024
Wonderful stroll down memory lane, as a former resident for 3 years after b-school. A comprehensive history of the landmark complex and its sale. Provides a fair representation of all the different parties' viewpoints and sparks an important discussion without sermonizing. Fabulous cast of characters, particularly politicians and even a friend from business school - I met so many of them through my work with the NYJL. A little redundant sometimes.
November 28, 2017
Very detailed analysis of Stuy Town and its legacy, albeit far from a fair-and-balanced tone. The author clearly does not think highly of traditional Wall Street institutions, and this sentiment is evident in his depictions of BlackRock, MetLife and other various financial firms/banks discussed in this book.
April 11, 2022
Fairly good book. Pretty repetitive and I'm not sure why the author took his depth the direction he did. I'd have preferred if he dove deeper into the financials with recorded proof rather than the he said she said type records. Still, all in all a fair read.
Not a financial case study by any means.
Not a financial case study by any means.
March 24, 2021
Ok content, but could have been much shorter.
Ok content, but could have been much shorter. Book mostly describes the players and the purchase of the apartment complex in 2006, which ultimately defaulted.
Ok content, but could have been much shorter. Book mostly describes the players and the purchase of the apartment complex in 2006, which ultimately defaulted.
January 28, 2023
I was privy to the inner workings of this deal thru work and it was not all glitz and glamour. Many people who didn't get this deal were very happy about the fish that got away. Interesting but tilted perspective.
June 7, 2025
Strong point of view to a fault (tenants always the good guys even though some of the interviewees are pretty clearly above “middle class”? Some odd anti-developer biases throughout) but a great, detailed narrative of an infamous New York real estate deal.
October 19, 2017
Great recounting, but could've done without the NIMBYism.
April 6, 2020
Great review about the insides of the housing crisis in NY from a real estate perspective. if you like the reale estate industry its a must read
May 8, 2020
I would give this a 4-star rating, but the editing is not very good.
September 28, 2023
I want to know more about what happened post 2013!
December 18, 2024
Interesting and informative read. I learned a lot about the real estate market, NYC history, etc. Not the easiest boom to get through but I appreciated it as resident of Manhattan.
March 25, 2025
Good info, but it’s the sort of book that explains high prices as being the result of ‘greedlfation’.
March 31, 2019
I live in London, UK where financiers profiteering off of housing is the norm.
It was, therefore, very interesting to read about how it happens in NYC. On aggregate, it doesn't really give me much hope for us city dwellers - regardless of where we are.
This book is very meticulously researched and makes for a good cautionary tale around the relentless 'financialisation' of what should be people's homes. It left me a bit sad, really.
It was, therefore, very interesting to read about how it happens in NYC. On aggregate, it doesn't really give me much hope for us city dwellers - regardless of where we are.
This book is very meticulously researched and makes for a good cautionary tale around the relentless 'financialisation' of what should be people's homes. It left me a bit sad, really.
May 11, 2013
Ugh, 368 pages, the author is a real blowhard who needed a good editor to cut the blather.
Every bit of trivia he could think of like:
China has the largest population in the world,
India has the second largest population in the world................
CUT TO THE CHASE!
What was different about this deal?
Basically the story is that adviser/money managers make deals where it's heads they win,
tails the "passive" money loses.
You learn who the suckers were, but not much else.
Meanwhile, the "adviser's", Tishman and Blackrock go on to make
even more BILLIONS$$$ while the suckers twist in the wind.
An age old story with a bit of a twist, rent control apartments in NYC
Tishman thought they could take a bunch of ugly, 1 bath apartments,
put granite countertops in the kitchens and sell them as luxury apartments!
Yet another defect, the book doesn't have an index
so you can't easily go to particular persons or subjects.
Every bit of trivia he could think of like:
China has the largest population in the world,
India has the second largest population in the world................
CUT TO THE CHASE!
What was different about this deal?
Basically the story is that adviser/money managers make deals where it's heads they win,
tails the "passive" money loses.
You learn who the suckers were, but not much else.
Meanwhile, the "adviser's", Tishman and Blackrock go on to make
even more BILLIONS$$$ while the suckers twist in the wind.
An age old story with a bit of a twist, rent control apartments in NYC
Tishman thought they could take a bunch of ugly, 1 bath apartments,
put granite countertops in the kitchens and sell them as luxury apartments!
Yet another defect, the book doesn't have an index
so you can't easily go to particular persons or subjects.
April 19, 2015
While not the usual type of book I read (non fiction, real estate, finance etc) I had great interest in exploring the issues: have a relative who"s lived in Stuyvestant Town most of her adult life (a nurse) and I also know the author periperhally. I remember my sister's anxiety when all this upheaval was going on but did not understand fully the extensive story. Nor did I really understand the remarkable history of the complex, going back to Mayor LaGuardia, and what it had meant to the working class of NYC.
I loved the initial history the best, then it got into great detail abut the financing deal, the big players including the political ones, and how it mirrored the recent financial meltdown due to deals such as these, and then what's happened subsequently. Mr Bagli is clearly a journalist, thorough and a little too detailed for me....yet, I couldn't put it down. Glad I finished it! And amazingly the complex's fate is still not fully resolved.
I loved the initial history the best, then it got into great detail abut the financing deal, the big players including the political ones, and how it mirrored the recent financial meltdown due to deals such as these, and then what's happened subsequently. Mr Bagli is clearly a journalist, thorough and a little too detailed for me....yet, I couldn't put it down. Glad I finished it! And amazingly the complex's fate is still not fully resolved.
October 12, 2019
Really interesting insight into the history and present day of Stuy Town. Highly recommend for anyone interested in NY history
July 22, 2013
This is an interesting book about the hot real estate market in New York pre 2008 and how greed and risk led people to do things they otherwise would not do. Unfortunately, the people hurt in this book weren't the rich, greedy guys, but the investors and pension funds that lost the bulk of the dough and much of their investment.
One thumb up.
One thumb up.
Displaying 1 - 30 of 45 reviews