|
|
Article: The Sellout: Bailout Roots From 9/11 To 1970's Penn Central.(Financial Well Being)(Book review)
- Article from:
- Basilandspice.com
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Basil & Spice. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
By Loyd Eskildson
In The Sellout, Gasparino traces the implosion of the financial services industry back to the late 1970s when Wall Streeters began taking much greater risks. Using leverage to take over companies, restructure, and then sell them at a profit, churning accounts (instead of advising clients on super-safe long-term investments), and making debt-laden acquisitions (instead of suggesting improvements in eg. managing cash flow) became the new, faster routes to wealth. (Leverage in the early 1980s reached 15:1 for those dealing in collateralized mortgage obligations, hitting 30:1 and more by 2008.)
Gasparino, however, believes that Wall Street ...