SuzanneMcGeeprovidesapenetratinglookattheforcesthattransformedWallStreetfromitstraditionalroleasacapital-generatingandeconomy-boostingengineintoabehemothoperatingwithonlyitsownshort-terminterestsinmindandwithrecklessdisregardforthebroaderfinancialsystemandthosewhoreliedonthatsystemfortheirwellbeingandprosperity.
Primaryamongtheseinfluenceswas"GoldmanSachsenvy":theself-delusiononthepartofRichardFuldofLehmanBrothers,StanleyO'NeilofMerrillLynch,andotherpowerbrokers(eggedonbytheirshareholders)thattakingmoreriskwouldenabletheircompaniestomakeevenmoremoneythanGoldmanSachs.Thathubris—andthatnarrow-mindedfocusonmaximizingtheirshort-termprofits—ledthemtotakeextraordinaryrisksthattheycouldn'tmanageandthatlaterseverelydamaged,andinsomecasesdestroyed,theirbusinesses,wreakinghavoconthenation'seconomyandmillionsof401(k)sintheprocess.
InaworldthatboastedmorehedgefundsthanTacoBelloutlets,McGeedemonstrateshowitbecameeverharderforWallStreettofulfillitsfunctionasthefinancialsystem'sversionofapowergrid,withcapital,ratherthanelectricity,flowingthroughit.Butjustasapowergridcanbestrainedbeyonditscapacity,sotoocana"financialgrid"collapseifitsfunctionsaredistorted,ashappenedwithWallStreetasitbecameincreasinglyself-servingandmotivatedsolelybyshort-termprofits.Throughprobinganalysis,meticulousresearch,anddozensofinterviewswiththebankers,traders,researchanalysts,andinvestmentmanagerswhohavebeenonthefrontlinesoffinancialboomsandbusts,McGeeprovidesapracticalunderstandingofourfinancial"utility,"andhowittoucheseveryonedirectlyasaninvestorandindirectlythroughthepower—capital—thatmakestheeconomywork.
WallStreetisasimportanttotheeconomyandtheoverallfunctioningofoursocietyasourelectricandwaterutilities.Butitdoesn'tactthatway.Thefinancialsystemhasbeensavedfromdestructionbutaslongasthemind-setof"chasingGoldmanSachs"lingers,itwillnothavebeenreformed.Asbankingundergoesitsbiggesttransformationsincethe1929crashandtheGreatDepression,McGeeshowswhereitstandstodayandpointstowhereitneedstogonext,examiningthefutureofthosefinancialinstitutionssupposedly"toobigtofail.