Dangerous Dreamers: The Financial Innovators from Charles Merrill to Michael Milken [Paperback]

Robert Sobel (Author)

Book Description

Publication Date: January 1, 2000

The story of the perpetrators of some of the most dizzing and daring financial machinations.

Editorial Reviews

From Publishers Weekly

Although Sobel ( The Big Board ) records such "innovations" as the Merrill Lynch small-investors-in-volume sales approach, Louis Wolfson's "conglomerate" pioneering and the corporate raidings of Boone Pickens, Sobel's liveliest concern here is the controversial "junk-bond" market of the 1980s and its star performer, Michael Milken. In a notably balanced chronicle, Sobel weighs government pressure (e.g., Milken was U.S. Attorney Rudolph Guiliani's "ultimate target") in the demise of Drexel Burnham Lambert against the junk-bond deregulation connection in the S & L debacles. Sobel also points to Milken's deft facilitation through pooled financing of still-flourishing business start-ups, and he implicitly questions the so-called "Fatico hearings" which allow a sentencing judge, as in Milken's case, to admit the presentation of evidence without an indictment.
Copyright 1993 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

From Library Journal

Sobel, an author of several books on Wall Street, here chronicles the tales of four financial innovators who all pioneered some financial wrinkle: Louis Wolfson, in corporate takeovers; Charles Merrill, in "people's capitalism" (stock ownership); and James Ling, in conglomerates. As Sobel sees it, these three were precursors of Michael Milken, who masterminded the junk (high yield/risk) bonds. Once considered one of the nation's most influential businessmen, Milken has stirred strong feelings among both admirers and critics. Sobel here challenges most of what are perceived as Milken's sins, pointing out the importance of his role in financing companies that could not have otherwise obtained funds (MCI, CNN, etc.). Sobel calls Milken's prosecution a prolonged witch hunt that in effect made him the scapegoat for various unpleasant financial excesses of the Eighties. Most libraries will want this informative and entertaining work.
- Alex Wenner, Indiana Univ. Libs., Bloomington
Copyright 1993 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 276 pages
• Publisher: Beard Books (January 1, 2000)
• Language: English
• ISBN-10: 1587980290
• ISBN-13: 978-1587980299
• Product Dimensions: 9 x 6 x 0.7 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #2,050,133 in Books (See Top 100 in Books)

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Customer Reviews

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2 of 2 people found the following review helpful:

5.0 out of 5 stars One of few books that concisely reviews the early history of financial innovation, September 3, 2009

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This review is from: Dangerous Dreamers: The Financial Innovators from Charles Merrill to Michael Milken (Paperback)

While it wasn't quite what I expected, I have to give the book high marks. It is less about innovation and more about how the junk bond market arose from a historical perspective leading from the LBO and greenmail period. The author provided numerous insights connecting Greenmail, Junk Equity, and Junk bonds as well as the major players. He makes a cogent and compelling counter-argument to the Den of Thieves depiction of Mike Milken.

It is definitely interest to point out who was tapped to go to jail relative to those that were guilty. It is also interesting to note the timing and potentially political driven characteristics of who went to jail and why.

Were the book falls short for Practioners is that it lacks more detailed accounts of innovation and how the innovation occurred. Instead, it is clear that it is attempting to describe the actors and players of innovation. This more true towards the end than the beginning.

For example, it was incredibly spot on to note the rise of the Pension fund structure and the consolidation of money pools that did not originate around the elite society. This was new and had significant impact. It was impressive to point out the rise and fall of the equities market, and how this changed the spectrum of return expectations. Possibly linking the funding considerations/return considerations that grew out of this with respect to the Pension funds might have been salient.

Similarly, while he from time to time discusses the discount rate, there is only a hint at why the discount rates huge volatility over the period escalated the junk bond market demand as well as sent it crashing.

I love that he mentions Mondiglioni's work and that he gives fair voice to the junk bond market innovations as having grown separately from major maturation of the LBO market. He may be one of few that I read that do not just lump these two innovations together. So big thumbs up there.

Overall, a great read, since most of the actors in the book are still alive and very important in the financial market today.