Tag Archive for Books

David Stockman – Bernanke’s (Untough) Love Child: The $27 Billion Affair At The Hilton – Wolf Richter- Testosterone Pit

Budget Director under President Reagan, then partner at private-equity firm Blackstone Group, and author of bestseller THE GREAT DEFORMATION: THE CORRUPTION OF CAPITALISM IN AMERICA, David Stockman makes mincemeat of the Hilton Hotels LBO by Blackstone (yup, the very firm where he used to be a partner) during the Fed-induced LBO craze. For the prior installment,…

David Stockman: How The Fed Helped Bushwhack TXU – Wolf Richter- Testosterone Pit

David Stockman, Budget Director under President Reagan and then a partner at private-equity firm Blackstone Group, has graciously permitted me to post excerpts from his bestseller, THE GREAT DEFORMATION: THE CORRUPTION OF CAPITALISM IN AMERICA. This is the second installment from Chapter 25, “DEALS GONE WILD: Rise of the Debt Zombies.” In this chapter, he vivisects…

David Stockman: Hedge Funds And The Rule Of Rips And Wrecks – Wolf Richter- Testosterone Pit

“At junctures of extreme financial stress, the high level of carry trade funding” that hedge funds use during bubbles “results in violent market reversals,” David Stockman writes. “Wholesale funding evaporates and involuntary asset sales cascade into a bidless abyss.” Hence the collapse of 2000–2003 (45%) and 2008–2009 (55%). Now they’re doing it again.

David Stockman: Hedge Funds And The Regime Of Insider Trading – Wolf Richter- Testosterone Pit

“As the Fed transformed Wall Street into a casino,” wrote David Stockman, “arrangements for insider speculation took on massive size,” with “hedge fund footings” soaring from $150 billion in 1990 to $3 trillion by the 2007–2008 peak. Trading books of Wall Street banks grew even more explosively. Together, they formed “the fast money complex.”