...exposes the truth behind the bailouts." -- Tom Fitton, President, Judicial Watch
analysis of the recent bailouts...includes the most comprehensive research of the actual underlying discussions that I have seen." -- Michael W. Bell, Retired Chief Financial Officer, CIGNA Corporation
"This book should be read by anyone willing to question the crisis narrative produced by the government to justify its actions and propagated by a credulous media." -- Peter J. Wallison, Arthur F. Burns Fellow in Financial Policy Studies, American Enterprise Institute
“Financing Failure shows us the appalling lack of logic in regulators' responses to financial crises and how, sadly, we can expect more of the same in the next crisis. McKinley has produced an excellent history of the flawed analysis of financial crisis policy of the last century.” —Jean Helwege, professor of business administration, University of South Carolina
“Reading Vern McKinley’s Financing Failure will lead you to a logical conclusion: Failure should be allowed to happen just as success should be allowed to happen. Mr. McKinley demonstrates not only that we have gone to great extremes to keep failure from happening, but also to protect the turf of the regulators who have intervened to keep it from happening. We have done this by putting at risk great sums of public funds and by creating fear in the public mind on the consequences of financial failure. To get a balanced view of the experience we are still going through, this book is a must read.” —William Wallace, adjunct professor of economics, University of North Texas
"This is a phenomenal, detailed policy review of American bank bailouts from the 20th century onward, with a specific focus on the most recent crisis and its aftermath. . . . Going forward, I suspect I will be returning to this book often. Well done.” —Matt Stoller, former senior policy advisor for Congressman Alan Grayson
From the Inside Flap
In the economic crisis, no issue has aroused more passion than the mega-trillion-dollar bailouts of large financial firms. The standard narrative has been one of necessity and fear, claiming the government must have greater power to respond or we all face terrible consequences.
Now in Financing Failure
, Vern McKinley examines the policy decisions behind the bailouts and reveals the untold story of what happened and how this relates to the history of U.S. government intervention. Based on new revelations from documents uncovered through the Freedom of Information Act, he scrutinizes the decisions made by the Treasury Department, Federal Reserve, and FDIC during the crisis of the 2000s and connects them to decisions of the 1930s and 1980s. These findings reveal that the genesis of financial crises is government itself, be in the interventions behind the Great Depression or the mandates that pushed for expanded homeownership leading to the 2000s crisis.
Large financial firms, bailout agencies, and politicians all claim to have "saved" America (and the world) from economic catastrophe. In truth, they have done everything within their power not just to protect themselves from disastrous consequences of their own decisions. but also to expand this unaccountable influence far further. McKinley reveals the difficulty in uncovering these issues as government agencies have withheld the truth regarding their behavior from the public. Instead of honestly and openly disclosing their actions, these agencies have deliberately concealed what has happened. Financing Failure
brings transparency to government bailouts, new and old.