The Ascent of Money_ A Financial History Part 10

59 Patricio Silva, 'Technocrats and Politics in Chile: From the Chicago Boys to the CEIPLAN Monks', Patricio Silva, 'Technocrats and Politics in Chile: From the Chicago Boys to the CEIPLAN Monks', Journal of Latin American Studies Journal of Latin American Studies, 23, 2 (May 1991), pp. 385-410.

60 Bill Jamieson, '25 Years On, Chile Has a Pensions Message for Britain', Bill Jamieson, '25 Years On, Chile Has a Pensions Message for Britain', Sunday Business Sunday Business, 14 December 2006.

61 Rossana Castiglioni, 'The Politics of Retrenchment: The Quandaries of Social Protection under Military Rule in Chile, 1973-1990', Rossana Castiglioni, 'The Politics of Retrenchment: The Quandaries of Social Protection under Military Rule in Chile, 1973-1990', Latin American Politics and Society Latin American Politics and Society, 43, 4 (Winter 2001), pp. 39ff.

62 Ibid., p. 55. Ibid., p. 55.

63 Jose Pinera, 'Empowering Workers: The Privatization of Social Security in Chile', Jose Pinera, 'Empowering Workers: The Privatization of Social Security in Chile', Cato Journal Cato Journal, 15, 2-3 (Fall / Winter 1995/96), pp. 155-166.

64 Ibid., p. 40. Ibid., p. 40.

65 Teresita Ramos, 'Chile: The Latin American Tiger?', Harvard Business School Case 9-798-092 (21 March 1999), p. 6. Teresita Ramos, 'Chile: The Latin American Tiger?', Harvard Business School Case 9-798-092 (21 March 1999), p. 6.

66 Laurence J. Kotlikoff, 'Pension Reform as the Triumph of Form over Substance', Laurence J. Kotlikoff, 'Pension Reform as the Triumph of Form over Substance', Economists' Voice Economists' Voice (January 2008), pp. 1-5. (January 2008), pp. 1-5.

67 Armando Barrientos, 'Pension Reform and Pension Coverage in Chile: Lessons for Other Countries', Armando Barrientos, 'Pension Reform and Pension Coverage in Chile: Lessons for Other Countries', Bulletin of Latin American Research Bulletin of Latin American Research, 15, 3 (1996), p. 312.

68 'Dest.i.tute No More', 'Dest.i.tute No More', Economist Economist, 16 August 2007.

69 Barrientos, 'Pension Reform', pp. 309f. See also Raul Madrid, 'The Politics and Economics of Pension Privatization in Latin America', Barrientos, 'Pension Reform', pp. 309f. See also Raul Madrid, 'The Politics and Economics of Pension Privatization in Latin America', Latin American Research Review Latin American Research Review, 37, 2 (2002), pp. 159-82.

70 All figures are for 2004, the latest comparative data available from the World Bank's World Development Indicators database. All figures are for 2004, the latest comparative data available from the World Bank's World Development Indicators database.

71 I am indebted here to Laurence J. Kotlikoff and Scott Burns, I am indebted here to Laurence J. Kotlikoff and Scott Burns, The Coming Generational Storm: What You Need to Know about America's Economic Future The Coming Generational Storm: What You Need to Know about America's Economic Future (Cambridge, 2005). See also Peter G. Peterson, (Cambridge, 2005). See also Peter G. Peterson, Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do about It Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do about It (New York, 2005). (New York, 2005).

72 Ruth Helman, Craig Copeland and Jack VanDerhei, 'Will More of Us Be Working Forever? The 2006 Retirement Confidence Survey', Employee Benefit Research Inst.i.tute Issue Brief, 292 (April 2006). Ruth Helman, Craig Copeland and Jack VanDerhei, 'Will More of Us Be Working Forever? The 2006 Retirement Confidence Survey', Employee Benefit Research Inst.i.tute Issue Brief, 292 (April 2006).

73 Gene L. Dodaro, Acting Comptroller General of the United States, 'Working to Improve Accountability in an Evolving Environment', address to the 2008 Maryland a.s.sociation of CPAs' Government and Not-for-profit Conference (18 April 2008). Gene L. Dodaro, Acting Comptroller General of the United States, 'Working to Improve Accountability in an Evolving Environment', address to the 2008 Maryland a.s.sociation of CPAs' Government and Not-for-profit Conference (18 April 2008).

74 James Brooke, 'A Tough Sell: j.a.panese Social Security', James Brooke, 'A Tough Sell: j.a.panese Social Security', New York Times New York Times, 6 May 2004.

75 See Mutsuko Takahas.h.i.+, See Mutsuko Takahas.h.i.+, The Emergence of Welfare Society in j.a.pan The Emergence of Welfare Society in j.a.pan (Aldershot / Brookfield / Hong Kong / Singapore / Sydney, 1997), pp. 185f. See also Kasza, (Aldershot / Brookfield / Hong Kong / Singapore / Sydney, 1997), pp. 185f. See also Kasza, One World of Welfare One World of Welfare, pp. 179-82.

76 Alex Kerr, Alex Kerr, Dogs and Demons: The Fall of Modern j.a.pan Dogs and Demons: The Fall of Modern j.a.pan (London, 2001), pp. 261-66. (London, 2001), pp. 261-66.

77 Gavan McCormack, Gavan McCormack, Client State: j.a.pan in the American Embrace Client State: j.a.pan in the American Embrace (London, 2007), pp. 45-69. (London, 2007), pp. 45-69.

78 Lisa Haines, 'World's Largest Pension Funds Top $10 Trillion', Lisa Haines, 'World's Largest Pension Funds Top $10 Trillion', Financial News Financial News, 5 September 2007.

79 'Living Dangerously', 'Living Dangerously', Economist Economist, 22 January 2004.

80 Philip Bobbitt, Philip Bobbitt, Terror and Consent: The Wars for the Twenty-first Century Terror and Consent: The Wars for the Twenty-first Century (New York, 2008), esp. pp. 98-179. (New York, 2008), esp. pp. 98-179.

81 Suleiman abu Gheith, quoted in ibid., p. 119. Suleiman abu Gheith, quoted in ibid., p. 119.

82 Graham Allison, 'Time to Bury a Dangerous Legacy, Part 1', Graham Allison, 'Time to Bury a Dangerous Legacy, Part 1', Yale Global Yale Global, 14 March 2008. Cf. idem idem, Nuclear Terrorism: The Ultimate Preventable Catastrophe Nuclear Terrorism: The Ultimate Preventable Catastrophe (Cambridge, MA, 2004). (Cambridge, MA, 2004).

83 Michael D. Intriligator and Abdullah Toukan, 'Terrorism and Weapons of Ma.s.s Destruction', in Peter Kotana, Michael D. Intriligator and John P. Sullivan (eds.), Michael D. Intriligator and Abdullah Toukan, 'Terrorism and Weapons of Ma.s.s Destruction', in Peter Kotana, Michael D. Intriligator and John P. Sullivan (eds.), Countering Terrorism and WMD: Creating a Global Counter-terrorism Network Countering Terrorism and WMD: Creating a Global Counter-terrorism Network (New York, 2006), table 4.1A. (New York, 2006), table 4.1A.

84 See IPCC, See IPCC, Climate Change 2007: Synthesis Report Climate Change 2007: Synthesis Report (Valencia, 2007). (Valencia, 2007).

85 Robert Looney, 'Economic Costs to the United States Stemming from the 9/11 Attacks', Robert Looney, 'Economic Costs to the United States Stemming from the 9/11 Attacks', Center for Contemporary Conflict Strategic Insight Center for Contemporary Conflict Strategic Insight (5 August 2002). (5 August 2002).

86 Robert E. Litan, 'Sharing and Reducing the Financial Risks of Future Mega-Catastrophes', Robert E. Litan, 'Sharing and Reducing the Financial Risks of Future Mega-Catastrophes', Brookings Issues in Economic Policy Brookings Issues in Economic Policy, 4 (March 2006).

87 William Hutchings, 'Citadel Builds a Diverse Business', William Hutchings, 'Citadel Builds a Diverse Business', Financial News Financial News, 3 October 2007.

88 Marcia Vickers, 'A Hedge Fund Superstar', Marcia Vickers, 'A Hedge Fund Superstar', Fortune Fortune, 3 April 2007.

89 Joseph Santos, 'A History of Futures Trading in the United States', South Dakota University MS, n.d. Joseph Santos, 'A History of Futures Trading in the United States', South Dakota University MS, n.d.

5. Safe as Houses 1 Philip E. Orbanes, Philip E. Orbanes, Monopoly: The World's Most Famous Game - And How It Got That Way Monopoly: The World's Most Famous Game - And How It Got That Way (New York, 2006), pp. 10-71. (New York, 2006), pp. 10-71.

2 Ibid., p. 50. Ibid., p. 50.

3 Ibid., pp. 86f. Ibid., pp. 86f.

4 Ibid., p. 90. Ibid., p. 90.

5 Robert J. s.h.i.+ller, 'Understanding Recent Trends in House Prices and Home Owners.h.i.+p', paper presented at Federal Reserve Bank of Kansas City's Jackson Hole Conference (August 2007). Robert J. s.h.i.+ller, 'Understanding Recent Trends in House Prices and Home Owners.h.i.+p', paper presented at Federal Reserve Bank of Kansas City's Jackson Hole Conference (August 2007).

6 http://www.canongate.net/WhoOwnsBritain/DoTheMathsOnLand Owners.h.i.+p . .

7 David Cannadine, David Cannadine, Aspects of Aristocracy: Grandeur and Decline in Modern Britain Aspects of Aristocracy: Grandeur and Decline in Modern Britain (New Haven, 1994), p. 170. (New Haven, 1994), p. 170.

8 I am grateful to Gregory Clark for these statistics. I am grateful to Gregory Clark for these statistics.

9 Frederick B. Heath, 'The Grenvilles, in the Nineteenth Century: The Emergence of Commercial Affiliations', Frederick B. Heath, 'The Grenvilles, in the Nineteenth Century: The Emergence of Commercial Affiliations', Huntington Library Quarterly Huntington Library Quarterly , 25, 1 (November 1961), p. 29. , 25, 1 (November 1961), p. 29.

10 Heath, 'Grenvilles', pp. 32f. Heath, 'Grenvilles', pp. 32f.

11 Ibid., p. 35. Ibid., p. 35.

12 David Spring and Eileen Spring, 'The Fall of the Grenvilles', David Spring and Eileen Spring, 'The Fall of the Grenvilles', Huntington Library Quarterly Huntington Library Quarterly, 19, 2 (February 1956), p. 166.

13 Ibid., pp. 177f. Ibid., pp. 177f.

14 Details in Spring and Spring, 'Fall of the Grenvilles', pp. 169-74. Details in Spring and Spring, 'Fall of the Grenvilles', pp. 169-74.

15 Ibid., p. 185. Ibid., p. 185.

16 Heath, 'Grenvilles', p. 39. Heath, 'Grenvilles', p. 39.

17 Spring and Spring, 'Fall of the Grenvilles', p. 183. Spring and Spring, 'Fall of the Grenvilles', p. 183.

18 Heath, 'Grenvilles', p. 40. Heath, 'Grenvilles', p. 40.

19 Ibid., p. 46. Ibid., p. 46.

20 Ben Bernanke, 'Housing, Housing Finance, and Monetary Policy', speech at the Kansas City Federal Reserve Bank's Jackson Hole Conference (31 August 2007). Ben Bernanke, 'Housing, Housing Finance, and Monetary Policy', speech at the Kansas City Federal Reserve Bank's Jackson Hole Conference (31 August 2007).

21 Louis Hyman, 'Debtor Nation: How Consumer Credit Built Postwar America', unpublished Ph.D. thesis (Harvard University, 2007), ch. 1. Louis Hyman, 'Debtor Nation: How Consumer Credit Built Postwar America', unpublished Ph.D. thesis (Harvard University, 2007), ch. 1.

22 Edward E. Leamer, 'Housing and the Business Cycle', paper presented at Federal Reserve Bank of Kansas City's Jackson Hole Conference (August 2007). Edward E. Leamer, 'Housing and the Business Cycle', paper presented at Federal Reserve Bank of Kansas City's Jackson Hole Conference (August 2007).

23 Saronne Rubyan-Ling, 'The Detroit Murals of Diego Rivera', Saronne Rubyan-Ling, 'The Detroit Murals of Diego Rivera', History Today History Today, 46, 4 (April 1996), pp. 34-8.

24 Donald Lochbiler, 'Battle of the Garden Court', Donald Lochbiler, 'Battle of the Garden Court', Detroit News Detroit News, 15 July 1997.

25 Hyman, 'Debtor Nation', ch. 2. Hyman, 'Debtor Nation', ch. 2.

26 Thomas J. Sugrue, Thomas J. Sugrue, The Origins of the Urban Crisis: Race and Inequality in Postwar Detroit The Origins of the Urban Crisis: Race and Inequality in Postwar Detroit (Princeton, 1996), p. 64. (Princeton, 1996), p. 64.

27 Ibid., pp. 38-43. Ibid., pp. 38-43.

28 Hyman, 'Debtor Nation', ch. 5. Hyman, 'Debtor Nation', ch. 5.

29 Sugrue, Sugrue, Origins of the Urban Crisis Origins of the Urban Crisis, p. 259.

30 For a recent case in Detroit, see Ben Lefebvre, 'Justice Dept. Accuses Detroit Bank of Bias in Lending', For a recent case in Detroit, see Ben Lefebvre, 'Justice Dept. Accuses Detroit Bank of Bias in Lending', New York Times New York Times, 20 May 2004.

31 Glen O'Hara, Glen O'Hara, From Dreams to Disillusionment: Economic and Social Planning in 1960s Britain From Dreams to Disillusionment: Economic and Social Planning in 1960s Britain (Basingstoke, 2007), ch. 5. (Basingstoke, 2007), ch. 5.

32 Bernanke, 'Housing, Housing Finance, and Monetary Policy'. See also Roger Loewenstein, 'Who Needs the Mortgage-Interest Deduction? ', Bernanke, 'Housing, Housing Finance, and Monetary Policy'. See also Roger Loewenstein, 'Who Needs the Mortgage-Interest Deduction? ', New York Times Magazine New York Times Magazine, 5 March 2006.

33 Nigel Lawson, Nigel Lawson, The View from No. 11: Memoirs of a Tory Radical The View from No. 11: Memoirs of a Tory Radical (London, 1992), p. 821. (London, 1992), p. 821.

34 Living in Britain: General Household Survey 2002 Living in Britain: General Household Survey 2002 (London, 2003), p. 30: (London, 2003), p. 30: http://www.statistics.gov.uk/cci/nugget.asp?id=821.

35 Ned Eichler, 'Homebuilding in the 1980s: Crisis or Transition?', Ned Eichler, 'Homebuilding in the 1980s: Crisis or Transition?', Annals of the American Academy of Political and Social Science Annals of the American Academy of Political and Social Science, 465 (January 1983), p. 37.

36 Maureen O'Hara, 'Property Rights and the Financial Firm', Maureen O'Hara, 'Property Rights and the Financial Firm', Journal of Law and Economics Journal of Law and Economics, 24 (October 1981), pp. 317-32.

37 Eichler, 'Homebuilding', p. 40. See also Henry N. Pontell and Kitty Calavita, 'White-Collar Crime in the Savings and Loan Scandal', Eichler, 'Homebuilding', p. 40. See also Henry N. Pontell and Kitty Calavita, 'White-Collar Crime in the Savings and Loan Scandal', Annals of the American Academy of Political and Social Science Annals of the American Academy of Political and Social Science, 525 (January 1993), pp. 31-45; Marcia Millon Cornett and Ha.s.san Tehranian, 'An Examination of the Impact of the Garn-St Germain Depository Inst.i.tutions Act of 1982 on Commercial Banks and Savings and Loans', Journal of Finance Journal of Finance, 45, 1 (March 1990), pp. 95-111.

38 Henry N. Pontell and Kitty Calavita, 'The Savings and Loan Industry', Henry N. Pontell and Kitty Calavita, 'The Savings and Loan Industry', Crime and Justice Crime and Justice, 18 (1993), p. 211.

39 Ibid., pp. 208f. Ibid., pp. 208f.

40 F. Stevens Redburn, 'The Deeper Structure of the Savings and Loan Disaster', F. Stevens Redburn, 'The Deeper Structure of the Savings and Loan Disaster', Political Science and Politics Political Science and Politics, 24, 3 (September 1991), p. 439.

41 Pontell and Calavita, 'White-Collar Crime', p. 37. Pontell and Calavita, 'White-Collar Crime', p. 37.

42 Allen Pusey,'Fast Money and Fraud', Allen Pusey,'Fast Money and Fraud', New York Times New York Times, 23 April 1989.

43 K. Calavita, R. Tillman, and H. N. Pontell, 'The Savings and Loan Debacle, Financial Crime and the State', K. Calavita, R. Tillman, and H. N. Pontell, 'The Savings and Loan Debacle, Financial Crime and the State', Annual Review of Sociology Annual Review of Sociology, 23 (1997), p. 23.

44 Pontell and Calavita, 'Savings and Loans Industry', p. 215. Pontell and Calavita, 'Savings and Loans Industry', p. 215.

45 Calavita, Tillman and Pontell, 'Savings and Loan Debacle', p. 24. Calavita, Tillman and Pontell, 'Savings and Loan Debacle', p. 24.

46 Allen Pusey and Christi Harlan, 'Bankers Shared in Profits from I--30 Deals', Allen Pusey and Christi Harlan, 'Bankers Shared in Profits from I--30 Deals', Dallas Morning News Dallas Morning News, 29 January 1986.

47 Allen Pusey and Christi Harlan, 'I-30 Real Estate Deals: A "Virtual Money Machine" ', Allen Pusey and Christi Harlan, 'I-30 Real Estate Deals: A "Virtual Money Machine" ', Dallas Morning News Dallas Morning News, 26 January 1986.

48 Pusey, 'Fast Money and Fraud'. Pusey, 'Fast Money and Fraud'.

49 Pontell and Calavita, 'White-Collar Crime', p. 43. See also Kitty Calavita and Henry N. Pontell, 'The State and White-Collar Crime: Saving the Savings and Loans', Pontell and Calavita, 'White-Collar Crime', p. 43. See also Kitty Calavita and Henry N. Pontell, 'The State and White-Collar Crime: Saving the Savings and Loans', Law Society Review Law Society Review, 28, 2 (1994), pp. 297-324.

50 The losses were initially feared to be higher. In 1990 the General Accounting Office foresaw costs of up to $500 billion. Others estimated costs of a trillion dollars or more: Pontell and Calavita, 'Savings and Loan Industry', p. 203. The losses were initially feared to be higher. In 1990 the General Accounting Office foresaw costs of up to $500 billion. Others estimated costs of a trillion dollars or more: Pontell and Calavita, 'Savings and Loan Industry', p. 203.

51 For a vivid account, see Michael Lewis, For a vivid account, see Michael Lewis, Liar's Poker Liar's Poker (London, 1989), pp. 78-124. (London, 1989), pp. 78-124.

52 Bernanke, 'Housing, Housing Finance, and Monetary Policy'. Bernanke, 'Housing, Housing Finance, and Monetary Policy'.

53 I am grateful to Joseph Barillari for his a.s.sistance with these calculations. Morris A. Davisa, Andreas Lehnert and Robert F. Martin, 'The Rent-Price Ratio for the Aggregate Stock of Owner-Occupied Housing', Working paper (December 2007). I am grateful to Joseph Barillari for his a.s.sistance with these calculations. Morris A. Davisa, Andreas Lehnert and Robert F. Martin, 'The Rent-Price Ratio for the Aggregate Stock of Owner-Occupied Housing', Working paper (December 2007).

54 s.h.i.+ller, 'Recent Trends in House Prices'. s.h.i.+ller, 'Recent Trends in House Prices'.

55 Carmen M. Reinhart and Kenneth S. Rogoff, 'Is the 2007 Sub-Prime Financial Crisis So Different? An International Historical Comparison', Draft Working Paper (14 January 2008). Carmen M. Reinhart and Kenneth S. Rogoff, 'Is the 2007 Sub-Prime Financial Crisis So Different? An International Historical Comparison', Draft Working Paper (14 January 2008).

56 Mark Whitehouse, 'Debt Bomb: Inside the "Subprime" Mortgage Debacle', Mark Whitehouse, 'Debt Bomb: Inside the "Subprime" Mortgage Debacle', Wall Street Journal Wall Street Journal, 30 May 2007, p. A1.

57 See Kimberly Blanton, 'A "Smoking Gun" on Race, Subprime Loans', See Kimberly Blanton, 'A "Smoking Gun" on Race, Subprime Loans', Boston Globe Boston Globe, 16 March 2007.

58 'U.S. Housing Bust Fuels Blame Game', 'U.S. Housing Bust Fuels Blame Game', Wall Street Journal Wall Street Journal, 19 March 2008. See also David Wessel, 'Housing Bust Offers Insights', Wall Street Journal Wall Street Journal, 10 April 2008.

59 Henry Louis Gates Jr., 'Forty Acres and a Gap in Wealth', Henry Louis Gates Jr., 'Forty Acres and a Gap in Wealth', New York Times New York Times, 18 November 2007.

60 Andy Meek, 'Frayser Foreclosures Revealed', Andy Meek, 'Frayser Foreclosures Revealed', Daily News Daily News, 21 September 2006.

61 http://www.responsiblelending.org/page.jsp?itemID=32032031.

62 Credit Suisse, 'Foreclosure Trends - A Sobering Reality', Credit Suisse, 'Foreclosure Trends - A Sobering Reality', Fixed Income Research Fixed Income Research (23 April 2008). (23 April 2008).

63 See Prabha Natarajan, 'Fannie, Freddie Could Hurt U.S. Credit', See Prabha Natarajan, 'Fannie, Freddie Could Hurt U.S. Credit', Wall Street Journal Wall Street Journal, 15 April 2008.

64 Economic Report of the President 2007 Economic Report of the President 2007, tables B-77 and B-76: http:// http:// www.gpoaccess.gov/eop/.

65 George Magnus, 'Managing Minsky', UBS research paper, 27 March 2008. George Magnus, 'Managing Minsky', UBS research paper, 27 March 2008.

66 Hernando de Soto, Hernando de Soto, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (London, 2001). (London, 2001).

67 Idem Idem, 'Interview: Land and Freedom', New Scientist New Scientist, 27 April 2002.

68 Idem Idem, The Other Path The Other Path (New York, 1989). (New York, 1989).