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 astronomical leverage at investment banks and their hedge fund and private equity clients virtually guarantees massive disruption in global markets. The crash, when it comes, will have no firebreaks. A quarter 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 quite different. But things are likely to get worse before they better. Whether you are an active investor, a homeowner, or a contributor to your 401(k) 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 like.
About this product: John Meriwether, a famously successful Wall Street trader, spent the 1980s as a partner at Salomon Brothers, establishing the best--and the brainiest--bond arbitrage group in the world. A mysterious and shy midwesterner, he knitted together a group of Ph.D.-certified arbitrageurs who rewarded him with filial devotion and fabulous profits. Then, in 1991, in the wake of a scandal involving one of his traders, Meriwether abruptly resigned. For two years, his fiercely loyal team--convinced that the chief had been unfairly victimized--plotted their boss's return. Then, in 1993, Meriwether made a historic offer. He gathered together his former disciples and a handful of supereconomists from academia and proposed that they become partners in a new hedge fund different from any Wall Street had ever seen. And so Long-Term Capital Management was born. In a decade that had seen the longest and most rewarding bull market in history, hedge funds were the ne plus ultra of investments: discreet, private clubs limited to those rich enough to pony up millions. They promised that the investors' money would be placed in a variety of trades simultaneously--a "hedging" strategy designed to minimize the possibility of loss. At Long-Term, Meriwether & Co. truly believed that their finely tuned computer models had tamed the genie of risk, and would allow them to bet on the future with near mathematical certainty. And thanks to their cast--which included a pair of future Nobel Prize winners--investors believed them. From the moment Long-Term opened their offices in posh Greenwich, Connecticut, miles from the pandemonium of Wall Street, it was clear that this would be a hedge fund apart from all others. Though they viewed the big Wall Street investment banks with disdain, so great was Long-Term's aura that these very banks lined up to provide the firm with financing, and on the very sweetest of terms. So self-certain were Long-Term's traders that they borrowed with little concern about the leverage. At first, Long-Term's models stayed on script, and this new gold standard in hedge funds boasted such incredible returns that private investors and even central banks clamored to invest more money. It seemed the geniuses in Greenwich couldn't lose. Four years later, when a default in Russia set off a global storm that Long-Term's models hadn't anticipated, its supposedly safe portfolios imploded. In five weeks, the professors went from mega-rich geniuses to discredited failures. With the firm about to go under, its staggering $100 billion balance sheet threatened to drag down markets around the world. At the eleventh hour, fearing that the financial system of the world was in peril, the Federal Reserve Bank hastily summoned Wall Street's leading banks to underwrite a bailout. Roger Lowenstein, the bestselling author of Buffett, captures Long-Term's roller-coaster ride in gripping detail. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein crafts a story that reads like a first-rate thriller from beginning to end. He explains not just how the fund made and lost its money, but what it was about the personalities of Long-Term's partners, the arrogance of their mathematical certainties, and the late-nineties culture of Wall Street that made it all possible. When Genius Failed is the cautionary financial tale of our time, the gripping saga of what happened when an elite group of investors believed they could actually deconstruct risk and use virtually limitless leverage to create limitless wealth. In Roger Lowenstein's hands, it is a brilliant tale peppered with fast money, vivid characters, and high drama.
About this product: Arthur Laffer -- the father of supply-side economics and a member of President Reagan's Economic Policy Advisory Board -- joins economist Stephen Moore of The Wall Street Journal editorial board and investment advisor Peter J. Tanous to send Americans an urgent message: We risk losing the exceptional standard of living that has made us the envy of the rest of the world if the pro-growth policies of the last twenty-five years are reversed by a new president.
Since the early 1980s, the United States has experienced a wave of prosperity almost unprecedented in history in terms of wealth creation, new jobs, and improved living standards for all. Under the leadership of Presidents Ronald Reagan and Bill Clinton, Americans changed the incentive structure on taxes, inflation, and regulation, and as a result the economy roared back to life after the anti-growth, high-inflation 1970s.
Now the rest of the world is following the American economic growth model of lower tax rates, more economic freedom, and sound money. Paradoxically, one country is moving away from these growth policies and putting its prosperity at risk -- America.
On the eve of a critical presidential election, Laffer, Moore, and Tanous provide the factual information every American needs in order to understand exactly how we achieved the prosperity many people have come to take for granted, and explain how the policies of Democrats Barack Obama, Hillary Clinton, and Nancy Pelosi can cause America to lose its status as the world's growth and job creation machine.
The End of Prosperity is essential reading for all Americans who value our nation's free enterprise system and high standard of living, and want to know how to protect their own investments in the coming storm.
About this product: J.K. Lasser's Your Income Tax 2009--the nation's all-time top-selling tax guide--is a proven, accessible resource with important strategies, useful recommendations and of course, all the latest tax law changes. With over 39 million copies sold, Your Income Tax 2009 is the #1 choice for taxpayers around the country.
In 1999, in The Return of Depression Economics, Paul Krugman surveyed the economic crises that had swept across Asia and Latin America, and pointed out that those crises were a warning for all of us: like diseases that have become resistant to antibiotics, the economic maladies that caused the Great Depression were making a comeback. In the years that followed, as Wall Street boomed and financial wheeler-dealers made vast profits, the international crises of the 1990s faded from memory. But now depression economics has come to America: when the great housing bubble of the mid-2000s burst, the U.S. financial system proved as vulnerable as those of developing countries caught up in earlier crises and a replay of the 1930s seems all too possible.
In this new, greatly updated edition of The Return of Depression Economics, Krugman shows how the failure of regulation to keep pace with an increasingly out-of-control financial system set the United States, and the world as a whole, up for the greatest financial crisis since the 1930s. He also lays out the steps that must be taken to contain the crisis, and turn around a world economy sliding into a deep recession. Brilliantly crafted in Krugman's trademark style--lucid, lively, and supremely informed--this new edition of The Return of Depression Economics will become an instant cornerstone of the debate over how to respond to the crisis.
About this product: If any comic has a claim to have truly reinvigorated the genre, then The Dark Knight Returns by Frank Miller--known also for his excellent Sin City series and his superb rendering of the blind superhero Daredevil--is probably the top contender. Batman represented all that was wrong in comics and Miller set himself a tough task taking on the camp crusader and turning this laughable, innocuous children's cartoon character into a hero for our times. The great Alan Moore (V for Vendetta, Swamp Thing, the arguably peerless Watchmen) argued that only someone of Miller's stature could have done this. Batman is a character known well beyond the confines of the comic world (as are his retinue) and so reinventing him, while keeping his limiting core essentials intact, was a huge task.Miller went far beyond the call of duty. The Dark Knight is a success on every level. Firstly it does keep the core elements of the Batman myth intact, with Robin, Alfred the butler, Commissioner Gordon, and the old roster of villains, present yet brilliantly subverted. Secondly the artwork is fantastic--detailed, sometimes claustrophobic, psychotic. Lastly it's a great story: Gotham City is a hell on earth, street gangs roam but there are no heroes. Decay is ubiquitous. Where is a hero to save Gotham? It is 10 years since the last recorded sighting of the Batman. And things have got worse than ever. Bruce Wayne is close to being a broken man but something is keeping him sane: the need to see change and the belief that he can orchestrate some of that change. Batman is back. The Dark Knight has returned. Awesome. --Mark Thwaite
About this product: "We cannot change the cards we are dealt, just how we play the hand." --Randy Pausch
A lot of professors give talks titled "The Last Lecture." Professors are asked to consider their demise and to ruminate on what matters most to them. And while they speak, audiences can't help but mull the same question: What wisdom would we impart to the world if we knew it was our last chance? If we had to vanish tomorrow, what would we want as our legacy?
When Randy Pausch, a computer science professor at Carnegie Mellon, was asked to give such a lecture, he didn't have to imagine it as his last, since he had recently been diagnosed with terminal cancer. But the lecture he gave--"Really Achieving Your Childhood Dreams"--wasn't about dying. It was about the importance of overcoming obstacles, of enabling the dreams of others, of seizing every moment (because "time is all you have...and you may find one day that you have less than you think"). It was a summation of everything Randy had come to believe. It was about living.
In this book, Randy Pausch has combined the humor, inspiration and intelligence that made his lecture such a phenomenon and given it an indelible form. It is a book that will be shared for generations to come.
About this product: The highly anticipated follow-up to the 2,000,000 copy bestselling inspirational book, The Power of Now With his bestselling spiritual guide The Power of Now, Eckhart Tolle inspired millions of readers to discover the freedom and joy of a life lived "in the now." In A New Earth, Tolle expands on these powerful ideas to show how transcending our ego-based state of consciousness is not only essential to personal happiness, but also the key to ending conflict and suffering throughout the world. Tolle describes how our attachment to the ego creates the dysfunction that leads to anger, jealousy, and unhappiness, and shows readers how to awaken to a new state of consciousness and follow the path to a truly fulfilling existence. The Power of Now was a question-and-answer handbook. A New Earth has been written as a traditional narrative, offering anecdotes and philosophies in a way that is accessible to all. Illuminating, enlightening, and uplifting, A New Earth is a profoundly spiritual manifesto for a better way of lifeand for building a better world. About the Author ECKHART TOLLE is a contemporary spiritual teacher who is not aligned with any particular religion or tradition. In his writing and seminars, he conveys a simple yet profound message with the timeless and uncomplicated clarity of the ancient spiritual masters: There is a way out of suffering and into peace. Eckhart travels extensively, taking his teachings throughout the world.
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