The Death of Capital: How Creative Policy Can Restore Stability

A call for change that will create prolonged economic prosperity "The Death of Capital" discusses the phenomenon described as "the financialization of the U.S. economy" or how financial speculation came to dominate our economy at the expense of productive capital-resulting in an increasingly unstable economic base. In this book, respected portfolio manager and longtime investment professional Michael Lewitt looks at how the U.S. economy has increasingly been dominated by short-term speculation rather than industrial expansion in recent years. This trend ignores the fact that capital itself is highly unstable. As a result, we have developed a regulatory system that does exactly the opposite of what it should be doing-favors speculation over production; obscurity over transparency. He also takes the time to analyze how Wall Street practices such as private equity and derivatives trading killed capital. Addresses "financialization" and its consequences, such as a weaker U.S. dollar, the destruction of American industries, and the loss of American economic and political influence Discusses how the legal system aided economic weakening by privileging short-term investment goals Calls for change that includes a program for principles-based reform that can address the shortcomings of the current system Financial reform is needed to make sure capital does not die again. This book is not simply a play-by-play of the financial crisis, but an analysis of the trends that led to it and what can be done in a regulatory sense to address the problems.