Economics · Finance

Stuck with the Billionaire Barons of Finance

This is a review of a New Yorker article called When the Fed Went After the Hedge Fund Legend Steven A Cohen, by Sheeluh Kolhator, New Yorker staff writer.  New Yorker issue Jan 16, 2017.  Go to the original article.  If you are not a New Yorker member, you should still be able to read the entire article linked to above.   You should get a complimentary membership for reading a few articles a month.

There are suddenly a lot of books about damage being done by the current American Financial sector.  The main criticism of current American finance is that it no longer serves in its original function of providing adequate capital for the investment in real business and industry, which is an extremely valuable service.  Countries that don’t provide adequate financing for concrete businesses do not grow or prosper.

Unfortunately the finance that has dominated the American economy for the last twenty years or so is mainly a casino economy being tapped by corrupt speculators who know how to game markets.

Some of the best of these books are listed at the bottom of this page.  About half of these books explain how financiers have created a bogus kind of economy they cash in on for unbelievably big bucks and impoverish the rest of America in the process.  The other half of these books explain what American economics looked like before the buccaneer financiers took over.  These books detail how American economics previously worked to create a strong, powerful, prosperous and more just America.

The article I am reviewing by Sheeluh Kolhator is the former kind of publication.  Her article appeared in January 16, 2017 edition of the New Yorker.

In April of 2017 her 368 page book, Black Edge, which tells the same story in far greater detail was published.  I haven’t read this book yet but I’m working on it.  In the meantime the New Yorker article I’m reviewing here provides a Quick Start for reading the book.

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In early 2-13 Preet Biharara, the US attorney for the Southern District of New York was getting ready to indite Steven J Cohen, the founder of SAC Capital Advisors.

This article is still in the process of being written!!

Books and articles that I referenced for this article:

When the Fed Went After the Hedge Fund Legend Steven A Cohen, by Sheeluh Kolhator, New Yorker staff writer.  New Yorker issue Jan 16, 2017. The article reviewed for this essay.  Go to the original article.

Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street, by Shelley Kolhatkar.  Go to the book.  

Makers and Takers: How Wall Street Destroyed Main Street. The Rise of Finance and the Fall of American Business, by Rana Foroohar.  Go to the book.

Land of Promise: An Economic History of the United States , by Michael Lind.  Go to the book.

Other People’s Money, The Real Business of Finance , by John Kay.  Go to the book.

Concrete Economics: The Hamilton Approach to Economic Growth and Policy, by Stephen S Cohen and Bradford DeLong.  (Note: this is clearly not Steven A. Cohen the billionaire financier.)  Go to the book.

The Divide: America Injustice in the Age of the Wealth Gap, by Matt Taibbi.  Go to the book.

11992North-Beach,-Ogunquit-2016_1098
Back Bay at Ogunquit Maine, by Jeff Hanselmann.  Picture by Hanselmann Photography. 

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