Free download Ð The Trillion Dollar Meltdown Easy Money High Rollers and the Great Credit Crash 106

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The Trillion Dollar Meltdown Easy Money High Rollers and the Great Credit CrashWe are living in the most reckless financial environment in recent history Arcane credit derivative bets are now well into the tens of trillions According to Charles R Morris the astronomical leverage at investment banks and their hedge fund and private euity clients virtually guarantees massive disruption in global m. Behind the alphabet soup of Wall Street acronyms CDO SIV RMBS what is it that our great financial engineers actually do Charles R Morris understands the process from the inside brilliantly summarizing the mathed up hocus pocus that got us into the current mess I found this vignette particularly compelling Consider the tale of Travelport a Web based reservations company The Blackstone private euity firm and a smaller partner bought Travelport in August 2006 They paid 1 billion of their own money and used Travelport's balance sheet to borrow an additional 33 billion to complete the purchase They doubtless paid themselves hefty investment banking fees which would also have been billed to TravelportAfter seven months they laid off 841 workers which at a reasonable guess of 125000 all in cost per employee salaries benefits space phone etc would represent annual savings of than 100 millionAnd then the two partners borrowed 11 billion on Travelport's balance sheet and paid that money to themselves presumably as a reward for their hard work In just seven months that is they got their 1 billion fund investment back plus a markup plus all those banking fees and annual management fees and they still owned the company Andnote that the annual 100 million in layoff savings would almost exactly cover the debt service on the 11 billion That's elegant what the financial press calls creating value Another word that springs to mind is lootingMorris also spends time at the end of his book reflecting on ineuality at the end of the book swiftly dispatching the Cato based apologists for current trends Between 1980 and 2005 the top tenth of the population's share of all taxable income went from 34 percent to 46 percent an increase of about a third The changing distribution within the top 10 percent however is what's truly remarkable The unlucky folks in the 90th to the 95thpercentiles actually lost a little ground while those in the95th to 99th gained a littleOverall however income shares in the 90th to 99th percentile population were basically flat 24 percent in 1980 and 26 percent in 2005 Almost all the top one tenth's share gains in other words went to the top 1 percent or the top centile who doubled their share of national cash income from 9 percent to 19 percentEven within the top centile however the distribution of gains was radically skewed Nearly 60 percent of it went to the top tenth of 1 percent of the population and than a fourth of it to the top one hundredth of 1 percent of the population Overall the top tenth of 1 percent than tripled their share of cash income to about 9 percent while the top one hundredth of 1 percent or fewer than 15000 taxpayers uadrupled their share to 36 percent of all taxable incomeAmong those 15000 the average tax return reported 26 million of income in 2005 while the take for the entire group was 384 billionMorris's book is exceptional because he simultaneously grasps the technical details of the financial crisis and the money driven politics that gave us the regime that made it possible I can't recommend this book highly enough These chilling words are as accurate a portrait of our current direction as I've read in some time A broad pattern of official and unofficial initiatives seem aimed at permanently locking in the advantagesof America's new baronial class There is no conspiracyagainst the poor and the middle class It's the inevitableoutcome of our current money driven political system combinedwith 'the disposition to admire and almost to worshipthe rich and powerful' which Adam Smith fingered as 'thegreat and most universal cause of the corruption of our moralsentiments'Morris expertly and entertainingly makes the case for this sobering conclusion

characters The Trillion Dollar Meltdown Easy Money High Rollers and the Great Credit Crash

Free download Ð The Trillion Dollar Meltdown Easy Money High Rollers and the Great Credit Crash 106 Ü We are living in the most reckless financial environment in recent history Arcane credit derivative bets are now well into the tens of trillions According to Charles R Morris the asIte different But things are likely to get worse before they better Whether you are an active investor a homeowner or a contributor to your 401k plan The Trillion Dollar Meltdown will be indispensable to understanding the gross excess that has put the world economy on the brink and what the new landscape will look lik. Leaving Wall Street or the financial system on its own is like a teacher asking 4th graders to behave They won't behave Regulation is important but people keep labeling it a leftist move Liberalism in order to be fair needs to be regulated because there are greedy people in the world and the good people will fall victim to them Homo homini lupusThis is a great book It's not left wing as people would generally say It does not propose an intrusive State but a State capable of keeping a fair game for all the players Actually if the State allowed players to buy their position in the game that would be really scary But it is exactly what happensWe're tired of seeing governments holding people's assets and handling them to the banks but somehow we still believe that free market is eual to deregulation This is predatory and primitive and we wouldn't have formed States if not to protect people from the actions of other people fro our primitive nature Legislation is important and we created them to hold people accountable for their actions to go further as society not just as individuals

Charles R. Morris ↠ 6 Read

Arkets The crash when it comes will have no firebreaks A uarter century of free market zealotry that extolled asset stripping abusive lending and hedge fund secrecy will come crashing down with it The Trillion Dollar Meltdown explains how we got here and what is about to happen After the crash our priorities will be u. I wanted to rad this book after seeing the documentary 'Inside Job' The book is not written with too much jargon and the issues are complex are explained well Economics is a difficult subject and one that is now on my list to understand better after reading this book Its certainly one i will read again and perhaps with extra knowledge next time round