Contents
Financial Shock Updated Edition: Global Panic and Government Bailouts—How We Got Here and What Must Be Done to Fix It
Acknowledgments
About the Author
Introduction
Chapter 1. Subprime Précis
Chapter 2. Sizing Up Subprime
Chapter 3. Everyone Should Own a Home
Chapter 4. Chairman Greenspan Counts on Housing
Chapter 5. Global Money Men Want a Piece
Chapter 6. Bad Lenders Drive Out the Good
Chapter 7. Financial Engineers and Their Creations
Chapter 8. Home Builders Run Aground
Chapter 9. As the Regulatory Cycle Turns
Chapter 10. Boom, Bubble, Bust, and Crash
Chapter 11. Credit Crunch
Chapter 12. Timid Policymakers Turn Bold
Chapter 13. Economic Fallout
Chapter 14. Back to the Future
Endnotes
Index
Extreme Money: Masters of the Universe and the Cult of Risk
Prologue: Hubris
Part I: Faith
Chapter 1. Mirror of the Times
Some Kinda Money
Trading Places
The Invention of Money
Barbarous Relic
The Real Thing
The Hotel New Hampshire
Collapse
Money Machines
Debt Clock
Money Is Nothing
The Mirrored Room
Chapter 2. Money Changes Everything
Mrs. Watanabe Goes to Wall Street
FX Beauties Club
Plutonomy
Trickling Down, Trading Up
I Shop, Therefore I Must Be!
Spend It Like Beckham!
Golden Years
Tax Avoidance
Japanese Curse
The God of Our Time
Chapter 3. Business of Business
Limited Consciences
A Brilliant Daring Speculation
Dirty Tricks
Marriages and Separations
The House That Jack Built
Capital Ideas
WWJD—Watch What Jack Did!
Business Dealings
Chapter 4. Money for Sale
It’s a Wonderful Bank!
Pass the Parcel
Loan Frenzy
Plastic Fantastic Money
Casino Banking
Confidence Tricks
The Citi of Money
Sign of the Times
Chapter 5. Yellow Brick Road
Monumental Money
The Battle of the “Pond”
Cool Britannia
Barbarian Invasions
Unlikely Centers
El-Dollardo Economics
The Unbalanced Bicycle
Foreign Treasure
Fool’s Gold
Liquidity Vortex
Chapter 6. Money Honey
Printing It
Column Inches
Video Money
Studs, Starlets
Financial Porn
Speedy Money
Literary Money
Money for All
Part II: Fundamentalism
Chapter 7. Los Cee-Ca-Go Boys
Dismal Science
Chicago Interpretation
Economic Politics
Academic Warfare
The Gipper and the Iron Lady
Political Economy
New Old Deal
The Monetary Lens
Unstable Stability?
Chapter 8. False Gods, Fake Prophecies
Mystery of Price
Demon of Chance
Corporate M&Ms
Risk Taming
Slow and Quick Money
Corporate Practice
Everything Is Just Noise
Perfect Worlds
Financial Fundamentalism
Fata Morgana
Part III: Alchemy
Chapter 9. Learning to Love Debt
Fixed Floor Coverings
By the Bootstraps
Leverage for Everything
Cutting to the Bone
Professor Jensen Goes to Wall Street
Drowning by Numbers
Censored Loans
High Opportunity Bonds
Fallen Angels
Junk People
Milken’s Mobsters
The Sweet Envy of Bankers
Thank You for Borrowing
One Bridge Too Far
National Treasure
Chapter 10. Private Vices
Excess Returns
Sexy Private Equity
Inflight Entertainment
Selling the Family Silver
Holey Dollar
Money for Nothing
Public Squalor, Private Profits
Locust Plagues
Vain Capital
Amateur Hour
Turbulence
Chapter 11. Dice with Debt
Securitization Recipes
Slice and Dice
Almost as Safe as Houses
Synthetic Stuff
Get Copula-ed
Sticky Mess
Several Houses of One’s Own
Cheaper Cuts of Mortgage
ARMs Race
Heroes for One Day
Chapter 12. The Doomsday Debt Machine
Alpha-Debt Soup
In the Shadow of Debt
Virtual Loans
Counting on the Abacus
Intellectual Masturbation
Used to Be Smart
Chain Reaction
Phase Transition
Terra incognita
Chapter 13. Risk Supermarkets
Mind Your Derivatives
Particle Finance
Hedging Your Bets
Sewer Bonds
Harvard Case Studies
The Italian Job
Betting Your Hedge
TARDIS Trades
I Will Kill You Later
First to Lose
Toxic Municipal Siblings
Playing Swaps and Robbers
The Greek Job
Madman’s Games
Chapter 14. Financial Arms Race
Shock-Gen
Evil Kerviel
Soldier Monks
Mystère Kerviel
Risk Is Our Business
Free Money
Credit’s Fatal Attraction
Post-Modern Contradictions
Derivative Deconstruction
Piñata Parties
Chapter 15. Woodstock for Hedge Funds
Keeping Up with the Joneses
In Search of Moby Dick
Style Gurus
Magic Wand
Lucky Man
Sharpe Practice
Embedded
In the Long Run, We Are All Dead
The Game
The More Things Change
Hedgestock
Chapter 16. Minsky Machines
Affinities and Curses
Crowded Hours
Crime Without Punishment
Fast Cars, Slow Hedge Funds
Fast Cornering
Children of Privilege
Make Money Not War
Part IV: Oligarchy
Chapter 17. War Games
Borrowed Times
Liquidity Factory
Six Degrees of Separation
Paper Chains
Toxic Pathologies
Relying on the Zohar
Blind Capital
Rent Collectors
Best in Best Possible World
Chapter 18. Shell Games
Central Bank Republics
Games of Old Maid
Protection Rackets
Stockholm Syndrome
Free Speech
No Accounting for Values
Mark to Make Believe
Out of Sight
Creeping Crumble
Management by Neglect
Directing Traffic
Chapter 19. Cult of Risk
Growth for All Seasons
Financial Groupthink
Celebrity Central Banking
Dealing with Dissent
Noneofuscouldanode
Je Ne Regrette Rien!
Last Supper
Chapter 20. Masters of the Universe
Money Illusions
Factories for Unhappy People
War Versus Money
Shop Floors
Misinformed
Smiling and Killing
Pay Grades
Much More Than This
Attached
Bonus Season
Plenty
Tipping Points
Chapter 21. Financial Nihilism
Cosmetic Consumption
The Physical Impossibility of Spending the Amount Earned by Someone Living
Celebrity Finance
Manqué Not Monkey
Wizard and Muggles
In the Midnight Hour
Last Rites
Safe As
Snuff Movies
Silent Mass Murder
Part V: Cracks
Chapter 22. Financial Gravity
Air Pockets
Mass Extinction
ER
This Is Not a Seminar!
ICU
Country for Sale
Crying Games
Newtonian Economics
Chapter 23. Unusually Uncertain
Botox Economics
China Syndrome
Regulatory Dialectic
Patient Zero
Nowhere to Run, Nowhere to Hide
Built to Fail
End of Ponzi Prosperity?
Losing the Commanding Heights
Zen Finance
Unknown Unknowns
Epilogue: Nemesis
Notes
Select Bibliography
Index
The Fearful Rise of Markets: Global Bubbles, Synchronized Meltdowns, and How to Prevent Them in the Future
Acknowledgments
About the Author
Foreword
Chapter 1. The Fearful Rise of Markets
Part I: The Rise
Chapter 2. Investment Becomes an Industry
Chapter 3. Indexes and Efficient Markets
Chapter 4. Money Markets Supplant Banks
Chapter 5. From Gold Standard to Oil Standard
Chapter 6. Emerging Markets
Chapter 7. Junk Bonds
Chapter 8. The Carry Trade
Chapter 9. Foreign Exchange
Chapter 10. Irrational Exuberance
Chapter 11. Banks Too Big to Fail
Chapter 12. Hedge Funds
Chapter 13. Dot Coms and Cheap Money
Chapter 14. BRICs
Chapter 15. Commodities
Chapter 16. Credit
Part II: The Fall
Chapter 17. Ending the Great Moderation
Chapter 18. Quant Funds
Chapter 19. Trust
Chapter 20. Bank Runs
Chapter 21. Bastille Day: Reflexive Markets
Chapter 22. Lessons from Lehman
Chapter 23. Politics and Institutions
Chapter 24. The Paradox of Diversification
Part III: The Fearful Rise
Chapter 25. Decoupling
Chapter 26. Banks Bounce
Chapter 27. A New Bubble?
Conclusion: 2010 and After
Notes
Select Bibliography
Index
