Hubbard, R. Glenn
background, 555
economic views/advice, 50, 555–556, 558
Hudson City Bancorp, 396
Hull, Cordell, 143, 144
Humphrey, George, 20, 214, 215, 220
Humphrey-Hawkins Act, 701, 706
Humphrey, Hubert
economic beliefs/policies, 217, 229
Merc visit, 309–310
Hurricane Sandy, 603
IBM
sales, 465
stock buybacks, 457, 463–465
Iceland banking system, 377–378
Ickes, Harold, 165
Immelt, Jeff, 35, 36, 37, 41, 471
Income tax
abolishing, 711
beginnings, 88
Indy Mac, 27
Inside Mortgage Finances, 436
Insull, Samuel, 16
Intel, 357–358, 453, 485
Interest rates (short-term)
early 2000s, 17–18
1955–1964, 299–300
See also specific individuals
International Monetary Fund (IMF), 236, 256
“Investment banks”
description/problems, 22–23
purpose, 24
See also specific banks
Isakson, Johnny, 580
Jackson, Mike and AutoNation, 624–625, 626–630
Japan
debt, 703–704
equity bubble, 336–337
“zaitech” theory/effects, 210–211
JDS Uniphase, 480–481, 485
Jedinak, Russell, 440
Jobs market
breadwinner jobs, 632, 634–635, 636
“debt-push” jobs, 633
HES Complex jobs, 632, 636, 637–639
HES government funding/subsidies, 632, 638–640, 644
job categories, 632
jobs created and, 635–637
part-time jobs, 632, 635, 636
recommendations, 708
Jobs, Steve, 453
Johnson, Lyndon
conventional forces/warfare state and, 216, 233
devaluation of pound and, 254–255
Fannie Mae and, 170
gold standard and, 254–255, 257
Great Society, 258
“guns and butter” deficits, 57, 58, 89, 105, 112, 204, 205, 214, 219, 245, 247, 249, 250, 254, 257, 258
Medicare/Medicaid, 697
Johnson, Samuel, 574
Jones, Jesse, 194
JP Morgan
after financial crisis (2008), 547, 693
Bear Stearns and, 393
before financial crisis (2008), 22, 28–29, 396–397
financial crisis/bailout (2008), 49, 535
“gain on sale” profits, 38
Goldman Sachs and, 493
JP Morgan Chase, 393, 398
Junk bonds
“covenant lite,” 503–504, 508
Fed interest rates and, 506
“gains” illusion (2000s), 506–507, 525–526
“Great Moderation” and, 507–508
mispricing, 504–505
Kaiser, George, 601
Karches, Susan, 444
Kashkari, Neel, 44
Kemp, Jack, 419
Kemp-Roth tax cut bill, 90, 95
Kennedy, John
administration, 20
Bay of Pigs, 230
campaign/election (1960), 231, 235, 237
defense spending and, 70, 216, 233
federal spending and, 70, 216, 219, 233, 674
gold standard and, 195–196, 244–246, 247, 248–249, 257
Walter Heller and, 226–229, 231, 247–249, 674
Keynes, J.M.
Bretton Woods conference, 237, 242
England’s default and, 241, 242
gold standard and, 110, 162, 182, 241, 242, 243
Nazi Germany and, 191–192
personality/style, 139, 187, 191–192, 345
Roosevelt and, 139, 162, 188
speculation, 491–492, 499
Time magazine cover/story, 249, 250
University of Chicago economists and, 243
KKR, 515, 520, 525, 526, 527, 529, 530
Kleiner Perkins, 602–603, 604
Korean War
economy and, 89, 131, 205, 212, 223, 227, 228, 232, 233
financing, 195, 204–205, 213, 214, 216, 217, 232
Kozlowski, Dennis, 483–484
Kroszner, Randall, 379
Krugman, Paul
background, 133–134
dot-com bust and, 536
Friedman’s “freshwater” proposition, 272
gold standard and, 198
on New Deal, 133–134, 139–140
stimulus after 2008 financial crisis, 139–140
Laffer, Art/curve, 88, 89–90, 127, 214, 589
Lane, Ray, 606–607
Lazear, Ed, 50, 557
LBOs. See Leveraged buyouts (LBOs)
League of Nations, 142–143, 239
Lear Corporation
“bankruptcy”/vulture speculators and, 666–668
history/stock market, 665–666, 667
Lee, Thomas, 531
Lehman
before financial crisis (2008), 22, 28–29, 384–385
crisis/failure of, 5, 7, 12, 19, 20, 21, 24, 26, 46, 47, 48, 49, 544
Lehman, Governor (New York), 150
Leveraged buyouts (LBOs)
CEW extraction, 513, 514, 515, 518, 525, 526, 534
CLOs and, 507
debt and, 503, 504, 505, 507–508, 510–511, 512–513, 529, 560
description/“role,” 448, 450–451, 453, 508–509, 559–560, 567
Dex Media/R.H. Donnelley & Sons example, 510–513
“dividend recaps,” 504
Fed interest rates and, 503
founding companies, 529
hotel construction, 538–542, 545
leaks and, 487
refinancing/flipping homes, 425
statistics on (2000s), 455, 471, 503
sunset industries and, 512
US after 1980, 4
See also Bain Capital; specific examples
Leveraged buyouts (mega-LBOs)
beginnings, 509–510
“bridge loans” and, 534–535, 541, 543
debt zombies, 516, 529–536, 562
description, 513
examples, 514–526, 530–532, 533–536
Libor (London Interbank Offered Rate), 311, 503
Lichtenstein, David, 538–539, 540
Lightstone Group, 538, 539, 540, 542, 543, 545
Lippmann, Walter, 149
Lockheed, 15
Loeb, Daniel, 664
London Economic Conference (1933), 139, 143–145, 187, 190, 191
“London Whale,” 493
Long Beach Savings, 440, 442
Long, Huey, 140, 154
Long, Russell, 130
Long-Term Capital Management (LTCM)
bailout/effects, 15, 16–17, 62, 141, 319, 332, 334–335, 389, 390–392
collapse causes, 497–498
description/speculations, 15, 16, 389–390
Meriwether and, 385, 390, 497, 498
other “investment banking” systems and, 389–390
Lovins, Amory, 599
LTCM. See Long-Term Capital Management (LTCM)
Lucent, 480, 481
M&A deals
dot-com bubble, 479–481
effects (summary), 470–471, 478, 481–484
Fortune 500 top companies, 466–467
leaks and, 487
mega-banks/mergers, 393–399
mergers false claims, 394–397, 462, 511
stock prices and, 456, 483–484
value destruction with, 481, 482–483
Wall Street growth, 393–399, 456, 462, 511
See also specific companies
MacDonald, Ramsay, 162
Mack, Christy, 444
Mack, John
description/backg
round, 47, 444
financial crisis/bailout (2008), 48
See also Morgan Stanley
Madoff, Bernie, 40
Main street banks
“contagion risk” and, 30–32
financial crisis (2008) and, 27, 28, 30, 35
Main Street economy. See Economy (US Main Street after financial crisis)
Mankiw, Greg, 50, 557
Mao Zedong, 60
Marcus, Bernard, 152
Martin, William McChesney
background/description, 207, 208, 209, 212
Federal Reserve and, 112, 133, 207–208, 209, 211–212
financial orthodoxy and, 195, 207–208, 209, 210, 211–212, 213, 231, 246, 248, 249, 299, 303, 330, 478, 497
Heller-Tobin proposal, 248
LBJ and, 112, 214
New York Stock Exchange, 209
Nixon and, 112, 231, 260
stock market crash lessons, 209, 210, 211
Martinez, Mel, 32
Matusow, Allen, 127
McCabe, Thomas, 206
McColl, Hugh, 394
McCracken, Paul, 117
McKinley, William B., 296
McMaster, Harold, 599
McNamara, Robert, 216
Mead Corporation, 564, 565
Medicaid
beginnings, 697
costs, 697–698
See also Social insurance
Medicare
beginnings, 174, 697
costs, 697–698
payroll taxes and, 174
See also Social insurance
Meese, Ed, 263, 416
Melamed, Leo
background, 286–287, 289, 290
CFTC and, 305–306, 308, 309, 311, 312–313
congressional agriculture committees and, 308–309
currency futures, 290–293, 294, 295, 297, 298, 299, 301, 302, 303, 305–306, 308, 309, 310, 311, 314
Friedman and, 290, 291, 292, 306
futures markets, 286–288, 290–293, 306
T-bill futures, 301–303
Mellon, Andrew, 88
Meriwether, John, 385–386, 497, 498
Merkin, Ezra, 40
Merrill Lynch
before financial crisis (2008), 384–385, 539
financial crisis (2008), 7, 24, 26
financial futures/options exchange, 302
See also Wall Street growth
MEW (mortgage equity withdrawal)
housing bubble (1990s–2000s), 427–430, 537, 555–556
housing market (after 2007), 583
Hubbard and, 555–556
Mexican peso crisis (1994), 15, 21, 319
Microsoft
stock buybacks, 457
stock market and, 357–358
Middle East wars
defense spending, 678, 690, 692–693
effects of, 678
George H.W. Bush and, 79
George W. Bush/unfunded wars, 50, 55, 79–80, 205, 214, 217–218, 693
Obama and, 678
Persian Gulf wars, 78–80
Miller, Bill (of Legg Mason), 394, 419–420, 656
Miller, William G., 132, 264, 293
Mills, Ogden, 156
Minimum wage, 709
Mises, Ludwig von, 337
Mishkin, Fred, 377–378
Mobilized discount rate, 699–702, 706
Moley, Raymond, 143, 144
“Momo” (momentum) traders, 456
Mondale, Walter, 309–310
Monetarist cone, 263
Monetary History of the United States, A (Friedman), 265, 271
Morgan, J. P., 366–367, 543, 700
Morgan Stanley
bailout, 46–50, 443–444
banning short selling of stock, 48–49
before financial crisis (2008), 22–23, 24, 28–29, 47, 384–385
financial crisis/bailout (2008), 20, 22, 23, 46–50, 208–209
financial futures/options exchanges, 301–302
short sells and, 47–48
without bailout, 6, 22, 24–26, 47
See also Wall Street growth
Morgenthau, Henry, Jr.
background, 161, 189
gold price, 161–162
monetary policies, 193–194, 196, 201–202
World War II financing, 196, 201–202
Mortgage equity withdrawal. See MEW
Mozilo, Angelo, 419
Musk, Elon, 604, 605, 606, 607
Muskie, Ed, 309–310
Nadar, Ralph, 405–406
New Deal
deficit spending myth, 163–164
description/effects, 51, 52, 137, 139, 140, 189–191
early programs, 159, 163
harm from (overview), 159–160, 189–194
legacy (overview), 169–194
myths of, 163–164, 166–168
NRA, 159–160
See also specific programs
“New economics”
effects (overview), 232–233
recognizing problems, 250
zenith of, 249–250
See also specific individuals
New York Times, 120, 207, 555, 664
Newsweek, 117, 174
Nikkei crash, 336–337
Nitze, Paul, 215
Nixon, Richard
deficit spending, 106, 112–113, 121–122, 204
description/personality, 110, 231, 260
economy/statistics, 114–118
on Federal Reserve, 340
financial/economic policy changes (1971), 45, 52, 89, 107, 109, 115, 133–134, 140–141
freeze/effects, 119–121, 123, 126
“full-employment budget,” 121–122, 127, 131
Glass-Steagall and, 176–177
gold standard end and, 45, 52, 56, 60, 89, 107, 109, 110, 115, 120, 121, 133–134, 141, 145, 195, 248, 258–259, 559
inflation and, 115–116, 119, 121, 125, 126, 176–177, 177, 178
international monetary matters and, 117
re-election priority of, 110, 114–115, 122, 145, 258–259
recession (1974), 125–126
Social Security and, 100–101, 131, 173
“special revenue sharing” reforms, 554
taxes, 87
trade deficit, 117–118
Weinberger and, 80
Nobel Prize for economics, 655–656
Nortel, 480
Obama, Barack
defense spending, 86, 218
taxes and, 675
See also Stimulus (after 2008 financial crisis)
Obamacare, 698, 699, 710
Olivetti, 570
O’Neill, Paul, 50
O’Neill, Tip, 309–310
Online sales, 651–652
Operation Twist (US), 251–252
Palmisano, Sam, 464
Paul, Ron, 19
Paulson, Hank
AIG, 6–7, 9, 12
auto industry bailout, 613, 614–615
background/description, 48, 50
financial crisis/bailout (2008), 5, 6–7, 8, 9, 10, 12, 20, 21, 25, 27, 36, 48, 50, 171, 613
General Electric, 36–37, 41
Morgan Stanley, 48
stock market and, 21
Paulson, John, 494–496, 545, 547
“Payrolls being skipped,” 32, 39, 45
Peak Debt
effects, 644–648, 668–669
fiscal cliff and, 680, 681, 682, 692
Pelosi, Nancy, 594, 595
Penn Central, 15
Perkins, Francis, 175
Perot, Ross, 480
Persian Gulf wars
effects, 79–80
Reagan’s defense buildup and, 78–80
Pittman, Key, 162
Plaza Accord (September 1985), 293, 336–337, 348
Poage, W. R., 308
Pork-belly trading, 286–287
Portfolio insurance, 313, 317–318
Prime funds
commercial paper market, 35
correction to, 35<
br />
financial crisis (2008), 33–34, 35
Prince, Chuck, 316, 398
Proctor & Gamble stock buybacks, 457, 460–461
Public Works Administration (PWA), 164–165
Rajaratnam, Raj, 502–503
Rand, Ayn, 13, 321, 325, 338
Rand, James H., 156–157
Rattner, Steve, 621, 623, 663
RCA and stock market, 355
Reagan, Ronald/economics
administration, 20
Chicago speech/plan, 71, 72, 73, 91
defense budget, 70–73, 80–84, 85, 100
defense buildup, 74–78, 80, 90, 217
federal spending/deficits, 57, 59, 219, 351, 689
Greenspan and, 13, 71, 315
GSEs, 405, 406
household net worth inequities, 68
legacy, 55
Merc and, 309–310
myths on, 51, 57–59, 62, 65, 67–69, 87, 89–90, 99–103, 348, 417, 674
“no recession” assumption, 92–95
Rosy Scenario errors, 91–95
Social Security reform plan and, 99–100, 101–104
“starve the beast” myth, 87, 99
supply-side vision and, 66–69
true legacy, 98, 106–107, 109
“unearned benefits” and, 100–101, 102, 103
See also Reagan, Ronald/tax policy
Reagan, Ronald/tax policy
description, 89–91, 451
inflation and, 88, 92, 93–95
Laffer curve and, 87–88
myths on, 89–90, 91, 95–99
origins, 87–89
Rosy Scenario errors, 91–95
tax bill/vote buying (1981), 95–97, 98
tax increases, 97–98, 99, 103
“welfare state” taxes and, 103–105
See also Reagan, Ronald/economics
Real estate development
insufficient demand, 547–548
See also Hotel construction; Housing bubble (1990s–2000s)
Realogy Corporation, 514
Recommendations. See Solutions
Reconstruction Finance Corporation (RFC), 153, 154, 162
Regan, Don, 20, 348
Reid, Harry, 594, 595
Republican politicians
anti-tax doctrine origins, 87–89
“deficits don’t matter,” 51, 55, 56, 91, 108, 275, 379, 590, 647, 669
Keynesian boom with Reagan/Bush (George H. W.), 59–60
See also specific individuals
Reserve Prime Fund, 33
Reuters news service, 681
RFC (Reconstruction Finance Corporation), 153, 154, 162
R.H. Donnelley & Sons, 510–513
Ridgeway, Matthew, 216
Ritholtz, Barry, 476
RJR-Nabisco, 513
Romney, George, 559
Romney, Mitt/presidential campaign
blaming Obama for recession, 556–557
Bolton and, 554
capitalism misunderstanding, 555
false economic basis of, 570–571
Hubbard and, 555, 556
national debt and, 552, 675
overview, 551–557, 559
Reagan rhetoric and, 557, 558
Ryan budget and, 552–553, 554, 689
tax cuts and, 552
The Great Deformation Page 101