# Highly Recommended《New Book Condition + A Surgical Deconstruction Of Wall Street》Suzanne McGee - CHASING GOLDMAN SACHS : How the Masters of the Universe Melted Wall Street Down...and Why They'll Take Us to the Brink Again
This Wall Street Journal bestseller in hardcover edition is a bran-new book and nicely wrapped with protective book-wrapper. The original new book is sold at usual price RM105.41 (Hardcover). Now here Only at RM26. You know what happened during the financial crisis … now it is time to understand why the financial system came so close to falling over the edge of the abyss and why it could happen again. How did Wall Street become a self-serving and ultimately destructive profit machine that imploded? Wall Street's real job is to be our "financial utility"-good financial plumbers that funnel capital to companies so the economy can expand and create jobs and also provide the means for individual investors to build portfolios that will increase personal wealth. But Wall Street went haywire and became (in Jon Stewart's words) a "bizarro" place that lost touch with most of America. Wall Street has been saved, but it hasn’t been reformed. What is the problem? Suzanne McGee provides a penetrating look at the forces that transformed Wall Street from its traditional role as a capital-generating and economy-boosting engine into a behemoth operating with only its own short-term interests in mind and with reckless disregard for the broader financial system and those who relied on that system for their well being and prosperity. Primary among these influences was “Goldman Sachs envy”: the self-delusion on the part of Richard Fuld of Lehman Brothers, Stanley O’Neil of Merrill Lynch, and other power brokers (egged on by their shareholders) that taking more risk would enable their companies to make even more money than Goldman Sachs. That hubris—and that narrow-minded focus on maximizing their short-term profits—led them to take extraordinary risks that they couldn’t manage and that later severely damaged, and in some cases destroyed, their businesses, wreaking havoc on the nation’s economy and millions of 401(k)s in the process. In a world that boasted more hedge funds than Taco Bell outlets, McGee demonstrates how it became ever harder for Wall Street to fulfill its function as the financial system’s version of a power grid, with capital, rather than electricity, flowing through it. But just as a power grid can be strained beyond its capacity, so too can a “financial grid” collapse if its functions are distorted, as happened with Wall Street as it became increasingly self-serving and motivated solely by short-term profits. Through probing analysis, meticulous research, and dozens of interviews with the bankers, traders, research analysts, and investment managers who have been on the front lines of financial booms and busts, McGee provides a practical understanding of our financial “utility,” and how it touches everyone directly as an investor and indirectly through the power—capital—that makes the economy work. Wall Street is as important to the economy and the overall functioning of our society as our electric and water utilities. But it doesn’t act that way. The financial system has been saved from destruction but as long as the mind-set of “chasing Goldman Sachs” lingers, it will not have been reformed. As banking undergoes its biggest transformation since the 1929 crash and the Great Depression, McGee shows where it stands today and points to where it needs to go next, examining the future of those financial institutions supposedly “too big to fail.” Other firms' CEOs chased Goldman Sachs, considering it their model for boosting their own personal wealth and keeping shareholders happy. Business journalist McGee paints Wall Street as a utility with capital flowing through the system like an electric power grid, noting why it almost failed. She describes the pressure on the U.S. House of Representatives in 2008 to bail out Wall Street firms, why Wall Street was called an “abstraction,” and how Wall Street morphed from an intermediary (raising capital) into a casino. Goldman Sachs was the master of its universe, generating average return on equity of 25.4 percent in the decade before the financial crisis, compared with 15 percent annually for four other firms during the same period. Suzanne McGee provides a penetrating and disturbing look at forces that have transformed Wall Street into a risk-taking behemoth that spun out of control and took the economy and millions of 401(k)s down with it. Primary among these forces was "Goldman Sachs envy." The demons that drove Richard Fuld of Lehman Brothers, Stanley O'Neil of Merrill Lynch, and the rest of Wall Street to ever-greater risk were perverse incentives and the illusion that they could make even more money than Goldman Sachs (where $11.6 billion in profits in 2007 led to an average bonus of $660,000). Firsthand reporting from veteran Wall Street journalist McGee provides riveting storytelling and a narrative that will grab both Wall Street insiders and people on "Main Street." She is the perfect guide through the labyrinth that is Wall Street, which now reaches from the actual street to Greenwich-based hedge funds, investment banks, venture capitalists in Silicon Valley, the futures pits of Chicago, and sovereign wealth funds. The author reports, “When left to their own devices, financial services firms . . . will focus almost monomaniacally on what is in their own best interest, seeking out ways to take earn sichigher returns and recruit top talent by paying the most lavish bonuses and offering the most enticing perks. . . . They cannot help themselves.” Excellent book. In “Chasing Goldman Sachs”, author Suzanne McGee uses the ‘chasing’ metaphor to cover a whole range of issues, trends and examples of how investment banking has transmogrified over the past 30 years. Once Wall Street brokerage firms were no longer dependent on stock commissions (after the SEC’s ‘Mayday’ pronouncement of May 1975) firms began looking for ways to replace and increase profits through a variety of non-traditional methods. Everything from the creation of derivatives to voracious competition for business to the emergence into new markets proliferated throughout the 80’s, 90’s and 00’s. Goldman Sachs was viewed by many as the leading progenitor of these new and advanced ways to make money by, in essence, shuffling or redirected money around and as such were the envy of the Street. (Or as Goldman CEO Lloyd Blankfien admits in the book that Goldman began ‘rationalizing it’s pushing of the ‘risk envelope’ during the credit bubble years.”) The trouble came when less informed players ineluctably began to mimic their techniques but did so with an increasing share of gusto and in a way that would ultimately, in many cases, have them driving so far ahead that they drove off the cliff. As ‘Chasing’ aptly demonstrates, Morgan Stanley, Bear Stearns, Lehman and many others ended up in hot water trying to ape Goldman’s success. In the process, McGee’s rendering basically serves as a history of the entire Wall Street landscape of the last thirty or so years, covering the machinations of these top financial firms and their relationships with investors, the trading exchanges, the IPO market, real estate, the Fed and all the power players that were a part of the story. (Bernanke, the FDIC, the banks, etc. all have a role to play.) As McGee describes, as deals got riskier, “bankers and traders assumed that someone else higher up the food chain was doing the worrying for them.” Unfortunately, as events have borne out, such was not the case. About the Author SUZANNE McGEE, is a contributing editor at Barron’s. She has written about the financial markets for the New York Post, Institutional Investor, Portfolio.com, and the Financial Times and is a Loeb Award winner for a multimedia series on consumer culture in China. Earlier in her career she was a staff reporter for the Wall Street Journal.
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