Griftopia

Griftopia contains seven analytical essays, followed by an epilogue, and a note about the author's sources. Taibbi names most sources he interviewed. However, in some instances sources remained anonymous for their protection. Other sourcing is self-evident from publicly known material. The introductory chapter is focused on the Tea Party movement whose members are aiming for simple solutions with less government intrusion. Taibbi maintains that the real world is too complex, and the Tea Party adherents are being manipulated (and financed) to do the bidding of Wall Street. Dismantling of regulations and absence of control has been part of the problem of the recent fiasco. Taibbi sees the Tea Party as "top-down media con" initiated by CNBC's Rick Santelli when he denounced not the huge bailout of the banks but rather the relatively small bailout for people facing foreclosure. Alan Greenspan, chairman of the Federal Reserve from 1987 to 2006, is described as the major enabler of the bubble economy and financial crisis. Taibbi catalogues Greenspan's string of economic prognostications that were "awful at best". He holds Greenspan accountable for fueling economic bubbles during his watch at the Federal Reserve by pushing money and abandoning traditional evaluations when advocating that "ideas" (not financial results) had become the new paradigm of financial evaluation. Greenspan is criticized for advising the public to use adjustable-rate mortgages (ARMs) in preference to fixed–rate mortgages shortly before his raising of interest rates. Taibbi accuses Greenspan of turning the Federal Reserve into a permanent bail-out system for the super-rich. Taibbi dissects the housing bubble crisis as a complex scam involving players at many levels. Entry level assessments, income levels, and credit scores were falsified or neglected, allowing the finance sector to profit in fees by foisting mortgage loans onto customers that could not afford to carry them. Taibbi maintains that ARMs and other "financial inventions" enlarged the pool of loans that could never be paid back, yet issuing agents and agencies were made rich by commissions. The real money, however, came in for the big banks that securitized these loans, that is to say, repackaged them as investment vehicles (and in the process took the loan originators off the hook). The commodities bubble of 2008 led to global food shortages and prompted the price of oil to rise over $140 per barrel. Taibbi depicts as its cause investment-bank led commodity speculation, after having convinced regulators to dismantle sensible regulations that had safeguarded the process of commodity trading, in place since the Great Depression. The sell-off of public assets is described in another essay with examples of frittering away assets under value to the detriment of future generations. The health care reform by the Obama administration is described as a "grotesque give-away" to the health insurance industry and a betrayal of the public trust. Taibbi argues that the insurance industry unfairly continues to be exempted from anti-trust legislation. Taibbi's last chapter takes on investment bank Goldman Sachs (GS) in an updated version of his 2009 Rolling Stone article where he "famously" In the epilogue Taibbi takes a look at the events after 2008. He addresses the issue that bankers in Financial Crisis Inquiry Commission (FCIC) hearings laid the blame of the 2008 financial crisis on "lazy poor people living in too much house", a view Republicans embraced as a failure of mixing private enterprise and social engineering, while the Obama administration continues to let Wall Street run the economic policy of the White House. Much of the backroom dealing that resulted in the massive and selective bail-out has not seen the light of day. Taibbi addresses his critics of the 2009 Rolling Stone article who did not argue his facts, but instead took fault with him for not understanding that the bail-out was necessary. Taibbi finally points out that, after 2008, the financial landscape is more concentrated than ever, and efforts at its regulation have been watered down. ==Reception==

Griftopia earned mixed reviews. The New York Times has described the book as a "relentlessly disturbing, penetrating exploration" of the events leading to the 2008 financial crisis. Daniel Ben-Ami of the Financial Times summed Griftopia up by calling it "a coarse, superficial and one-sided rant that oozes contempt for humanity." Financial journalist Felix Salmon has noted that Griftopia is not a partisan book in the traditional sense as Taibbi dishes out criticism at both Republicans and Democrats. Yet Salmon also declared: "if muck is going to be raked, you want Taibbi to be doing the raking." Sheelah Kolhatkar has stated that Taibbi has "legitimate targets" and a "right to be angry", as most of the "perpetrators of the financial crisis have escaped more or less unscathed", and while "the worse things get for average Americans, the better off (are) the top 1 percent". Language Taibbi, a reporter for Rolling Stone, uses a journalistic style that incorporates profanity. While The New York Times said the writing style makes the book readable and "engaging", and as distracting. As The New York Times states: ==See also==