The Great Deformation (133 page)

Finally, I have made extensive use of the memoirs written by the principals
who shaped many of the periods and episodes deemed salient in this narrative. Examples include
An Adventure in Constructive Finance
by Carter Glass (Doubleday, Page & Company, 1927);
The Morganthau Diaries, Years of Crisis 1928–1938
edited by John Morton Blum (Houghton Mifflin Company, 1959);
Mandate for Change, 1953–1956
and
Waging Peace, 1956–1961
by Dwight D. Eisenhower (Doubleday & Company, 1963);
Inside the Nixon Administration: The Secret Diary of Arthur Burns, 1969–1974
edited by Robert Ferrell (University Press of Kansas, 2010);
Time for Truth
by William Simon (Reader's Digest Press, 1978);
The Age of Turbulence
by Alan Greenspan (Penguin Books, 2007); and
On the Brink
by Henry M. Paulson, Jr. (Business Plus, 2010).

A123 company,
602
,
604

Abe, Shinzo,
703

Acheson, Dean,
161
,
215

Ackley, Gardner,
254–255

ACORN (Association of Communities for Reform Now),
408
,
411

Agricultural Adjustment Act (AAA/1933)

      
description/problems,
181–182

      
New Deal and,
178–179
,
181–182

Agriculture

      
debt changes (1919–1933),
180

      
mechanization revolution,
179–180

      
New Deal and,
180–182

      
statistics on,
182

      
World War I/early 1900s,
151
,
179–180

AIG

      
bailout,
5
,
6–7
,
8
,
11
,
19
,
21

      
before 2008,
356

      
“contagion” warning and,
6
,
8–9
,
10

      
credit default insurance (CDS),
6
,
7
,
10
,
11–12

      
structure/“assets,”
6
,
8–10

      
without bailout,
5–6
,
7
,
8
,
11
,
12

Al Qaeda,
678
,
693

Alltel Corporation LBO,
518–519
,
523–524

American General,
9

American Petroleum Institute,
673

Ameriquest Mortgage (Ameriquest Capital Corporation),
421–423
,
442

Amtrak,
610

Anderson, Benjamin,
210
,
344

Anderson, Marty,
71

Angell, Wayne

      
background,
307

      
Federal Reserve,
308
,
318

      
financial futures,
307
,
308
,
314
,
318

Apollo,
529

Arizona education funding,
595

Arnall, Roland,
421
,
422
,
423
,
442

Arrow, Kenneth,
595n

Ash, Roy,
130

Asian economic growth

      
effects on US,
60–61
,
63–64
,
65–66

      
See also specific countries

Association of Communities for Reform Now (ACORN),
408
,
411

Astor, Vincent,
144
,
154

“ATMs going dark,”
32
,
45

Auto industry

      
car sales slump,
625–626

      
debt in bubble era,
572–573
,
576

      
excess capacity,
620

      
financial crisis (2008) and,
572

      
See also specific companies

Auto industry bailout

      
AutoNation/Jackson and,
626–629

      
George W. Bush and,
613
,
615
,
661

      
Mitt Romney and,
551–552
,
664

      
Obama's reelection and,
614
,
623

      
one percent getting richer with,
660–668

      
problems overview,
613–614
,
623–630

      
vulture capitalism,
663–665

      
See also specific companies

AutoNation and Mike Jackson,
624–625
,
626–630

Bagehot, Walter,
699–700

Bagley, William,
305
,
306
,
309

Bailout.
See
Financial crisis (2008) bailout

Bain Capital

      
accounting tricks,
568–569

      
Ampad (American Pad and Paper),
564–567

      
bankruptcies and,
561–563
,
564
,
567
,
570

      
Clear Channel,
531

      
debt and,
560
,
562
,
565–566
,
567

      
Experian,
567–568
,
570

      
Goldman Sachs and,
562

      
Greenspan bubble and,
560–562
,
566
,
570
,
571

      
inside job (Experian),
567–568
,
570

      
Italian yellow pages/phone book publisher,
569–570

      
job destruction vs. job creation,
558
,
563–564
,
570

      
KKR and,
515
,
525
,
526
,
527
,
529

      
Republican actions/beliefs and,
570–571

      
Romney's tenure (summary),
560–561
,
570

      
speculation/windfalls and,
558–570

      
Stage Stores Inc.,
562–563
,
564

      
Staples,
563–564

      
Wesley Jessen,
568–569
,
570

      
Williamhouse,
565
,
566

Bair, Sheila,
44

Baker, Howard

      
budget (1983),
81
,
82

      
Kemp-Roth and,
95

      
spending cuts plans,
90–91
,
100
,
101

      
Volcker and,
264

Baker, Jim

      
background,
263
,
348

      
job switch/at Treasury,
293
,
314
,
348
,
349

Baltimore Sun
,
156

Bank of America

      
after financial crisis (2008),
693

      
AIG and,
10

      
bailout,
7
,
49

      
before financial crisis (2008),
393
,
395
,
399
,
542

Banks

      
abolishing deposit insurance and,
707

      
central banking problems (overview),
699–703

      
chartered banks,
707

      
comparison of runs (1930s/2008),
27

      
restoring banker's bank,
706–707

      
See also
Investment banks
;
Main street banks
;
specific banks

Barclays bailout,
7

Bear Stearns

      
before financial crisis (2008),
22
,
28–29
,
384–385
,
539
,
540

      
financial crisis/bailout (2008),
543

      
financial futures/options exchange,
302

      
toxic assets,
392–393
,
534
,
535

Bernanke, Ben

      
background,
42
,
183

      
beliefs/doctrines,
50

      
“deflation” warnings,
444–446

      
false depression comparison,
583–588

      
financial crisis/bailout (2008),
5
,
6
,
8
,
25
,
27
,
208
,
272
,
365–366
,
399
,
443–445
,
577–579

      
Friedman and,
184
,
270
,
272
,
578

      
Great Depression and,
42
,
43
,
183
,
184
,
189
,
444
,
577–578

      
housing boom and,
18
,
374–375
,
428
,
431

      
interest rates,
266
,
445
,
446
,
503
,
522

      
money printing,
184
,
185–186
,
365–366
,
447–448
,
544
,
657–658

      
“Put” beginnings,
19
,
475

Biden, Joe,
603

Bin Laden, Osama,
79
,
692

Blackstone

      
IPO,
538–539
,
540

      
John Paulson hedge fund partnership,
545
,
547

      
leveraged buyouts (LBOs),
11
,
512
,
516
,
517
,
529
,
533
,
534
,
538
,
540
,
541
,
542
,
543

      
Stockman and,
11
,
512
,
516
,
560

Blankfein, Lloyd,
48
,
668

Bloom, Ron,
621

Bolton, John,
554

Bovender, Jack,
525

Brady, Nick,
318

Bretton Woods monetary system

      
conference,
241–242

      
description/effects,
117
,
118

      
flaws,
110
,
243–244

      
gold standard end effects,
56
,
60
,
109–111
,
124–126
,
133–135
,
176–177
,
231