Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy (Hardcover)

~ (Author), Bill Fleckenstein (Foreword), Aaron Task (Contributor)

Editorial Reviews

Review

“Ritholtz’s book seeks to explain how the United States, once so proud, became “a nanny state for well-paid bankers. Ritholtz may be just the right person to explain the transition to both the disillusioned amateur and the finance junkie. He doesn’t pull his punches or bury the truth in layers of finance-speak, caveats, and disclaimers. Since he began blogging seven years ago, in-the-know readers of his popular blog, The Big Picture , have turned to Ritholtz for his prescient, refreshingly honest commentary on the economy. Anyone interested in understanding the roots of our current crisis should check out the book, but while you wait by the mailbox, here are some highlights.” (Freakonomics Blog, New York Times)

"Succeeds in laying out all that transpired in easy-to-understand language. If you want to know how we got into this mess and what might still be coming, this is the book for you." (The Wall Street Journal)

"Mr. Ritholtz has written an important book about a complicated subject, and yet you could still read it at the beach. Here’s hoping that some policy makers in Washington take it with them on vacation this month." (The New York Times)

"These are some of the provocative and even dangerous questions that Barry Ritholtz takes on in Bailout Nation…Above all, Bailout Nation is about the socialization of risk and the privatization of profits. Bailouts are always unfair. Small businesses and individuals are left to the mercies of bankruptcy courts all the time. (Forbes.com)

"Before the housing and credit bubbles popped, Barry Ritholtz, a lawyer turned blogger and money manager, was one of the voices crying in the wilderness. His caustic (and occasionally profane) blog, The Big Picture, dissected macroeconomic news and relentlessly cut through spin. His book, Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy (Wiley), takes a long view of the roots of the economic crisis, tracing the history of a series of ever more expensive taxpayer-funded bailouts of failed industries." (Newsweek.com)

"A comprehensive crisis scrapbook compiled by the money manager behind the popular financial blog the Big Picture in a quippy, no-nonsense voice that sometimes successfully channels Barney Frank.”(NY Mag, Daily Intel)

Product Description

A riveting indictment of those responsible for our current financial mess

Bailout Nation offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and a well-established industry pundit, this book skillfully explores how the United States evolved from a rugged independent nation to a soft Bailout Nation-where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times.

Entertaining and informative, this book clearly shows you how years of trying to control the economy with easy money has finally caught up with the federal government and how its practice of repeatedly rescuing Wall Street has come back to bite them.

• The definitive book on the financial crisis of 2008
• Names the villains responsible for this tragedy-from financial regulators to politicians
• Shows how each bailout throughout modern history has impacted what happened in the future
• Examines why the consumer/taxpayer is left suffering in an economy of bubbles, bailouts, and possible inflation

Scathing, but fair, Bailout Nation is a voice of reason in these uncertain economic times.

See all Editorial Reviews

Product Details

• Hardcover: 332 pages
• Publisher: Wiley; Revised edition edition (May 26, 2009)
• Language: English
• ISBN-10: 0470520388
• ISBN-13: 978-0470520383
• Product Dimensions: 8.9 x 6.3 x 1.4 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (33 customer reviews)
• Amazon.com Sales Rank: #19,117 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

107 of 116 people found the following review helpful:

5.0 out of 5 stars The Backstory to Bailout Nation, May 22, 2009

By	Barry Ritholtz (NY) - See all my reviews

Amazon Review


Long story short: After Bill Fleckenstein's GREENSPAN'S BUBBLES: THE AGE OF IGNORANCE AT THE FEDERAL RESERVE McGraw Hill asked him to do a follow up to that book. He (wisely) said no.

However, Bill suggested they contact me.

Which the publisher did. I turned them down (several times). Who had time to write a book? Besides, I did not want to do a fast rush-to-judgment type of thing. But they were tenacious in their pursuit, and I eventually succumbed to their flattery -- but on my terms, including having final edit on the manuscript. (This becomes important later on, as you will soon see).

Because of the way events played out, I ended up writing three separate Bailout Nation books over the next 15 months. The first version was a history of bailouts. This overview covered an arc from Lockheed (1971) to Bear Stearns (March 2008). Around the time this book was due (~Labor Day 2008), something was in the air . . . you could smell the leading edge of the approaching storm. I convinced the publisher to hold off a few weeks.

Boom! Fannie Mae blew up. Then Freddie Mac, Lehman Brothers, AIG, Citigroup, Bank of America. Soon Merrill was on the ropes, followed by Morgan Stanley, Goldman Sachs, GM and GE. All hell was breaking loose. Well, I thought, at least I had an ending. The expanded version of the manuscript, with greater emphasis on the latter part of 2008, was finished in December '08.

Or so I thought.

After I handed the book into the publisher (McGraw Hill), they let me know they had problems with my assessment of the Ratings Agencies. They were unhappy with my calling them "Pimps & Hos", or describing their business model of rating junk bonds as AAA for big fees as "Payola." (What would you call it?)

Not coincidentally, McGraw Hill owns of the largest Rating Agencies, Standard & Poor's.

The compromise was to remove the reference to Pimps, but using publicly available data and congressional testimony, to add more detailed analysis and quotations from experts. When it was finished, I found the revised section to be much more even handed -- and far more devastating -- to S&P. They (along with fellow rating agencies Moody's and Fitch's) were key enablers to the entire crisis. There were many other guilty parties, but I simply could not under-emphasize the ratings agencies.

When McGH rejected it again, I exercised my right to buy the manuscript back from them in January 2009. Numerous publishers were interested, but I went with Wiley -- they have a great deal of experience publishing business/investing related books, and as a publisher, had no conflicts of interest that would interfere with telling the full story.

The third version was the charm.

By this time, the amount of bailout money going to mismanaged companies, reckless speculators, and incompetent corporate executives had skyrocketed to 14 trillion dollars. This was infuriating to anyone paying attention.

Astonishing things happened as the book progresses. The more I researched and wrote, the more it was apparent we were witnessing the greatest heist ever made. By the last section of the book, history's biggest transfer of wealth -- from the taxpayer to the Banksters -- was taking place. Trillions were being shifted from the responsible to the reckless, from the prudent to the incompetent. It was infuriating -- and you will see as the book progresses my initial academic tone gets replaced with greater snark and anger.

I not only had my ending, I had a new cause -- exposing those who caused this mess, be they Democrat or Republican, Corporate CEO or derivatives trader. I hope the end result is something that will inform and illuminate, while entertaining you along the way . . .

16 of 17 people found the following review helpful:

5.0 out of 5 stars The United States of Bailouts, June 8, 2009

By	Alex Zhilyakov (Boston, USA) - See all my reviews (REAL NAME)

Mr Ritholtz does an excellent job drawing a trendline from the first bailout in 70's to the latest bailouts of 2009. He illustrates how our own government cheer-led us into the Next Great Depression.

What makes this book different from books of other numerous authors?

* The book is written in a plain language an average person can understand
* The book is well-structured and sticks to historical events which led us into the mess
* For all government bailouts, Mr Ritholtz brings focus to their long-term effects rather than short-term ones
* Mr Ritholtz does not try to predict future or give investment advice (thank you)
* Illustrations are hilariously funny


I enjoyed every page, it is very well worth time and money.

14 of 15 people found the following review helpful:

5.0 out of 5 stars Great Read - Surprisingly Entertaining!, May 24, 2009

By	Brad Agdern (Chicago, IL United States) - See all my reviews (REAL NAME)

I will admit I am an outsider to the financial world. However Bailout Nation clarified current financial issues into a format that was hilarious and easy to follow. I am an avid reader of Barry Ritholtz's blog "The Big Picture," and this book showcases his ability to streamline all the best sources out there in a very comprehensive yet succinct manner. The clever artwork on the cover and between chapters proves very entertaining. I also enjoyed the section towards the end in which Ritholtz's respected contemporaries offered advice to President Obama.