Regular price: $24.49
Buy Now with 1 Credit
Buy Now for $24.49
This books is full of lots of interesting riches to rags stories, but it also explains why it's better to have a middle class driven economy than a richistan driven economy. Politicians need to quit worshipping the rich and read this book, and then they need to pass a law that caps all political contributions at $500 or less.
5 of 5 people found this review helpful
Robert Frank is the wealth reporter for the WSJ, where he writes the wealth blog, and is also the author of the 2008 book Richistan. Reading The High-Beta Rich is good fun, as who doesn't like to hear about former billionaires reduced to cleaning their own toilets and shopping at Marshalls. Frank hangs The High-Beta Rich on both stories and data, and he is a good story-teller.
The underlying data story is the degree to which the income, and therefore spending, of the wealthy fluctuates. Today's rich are different from the previous wealthy class, as most of the recent big fortunes were made by way of financial manipulation as opposed to the traditional route of building a company over many years (or through inheritance). The formerly mega-wealthy that Frank profiles made their millions (or billions) by borrowing large sums of money, and as often as not investing this borrowed money in overpriced real estate development schemes. As quickly as the sub-prime bubble burst, they were forced to lay-off the armies of butlers and private chefs that they had accumulated during the financial and housing bubble. The fallout of the rapid declines in the wealth of many previous top-earners is not however limited to the yacht and mansion set, as many municipalities (read Aspen) and employees (read most of us), have grown to depend on the tax dollars and spending of the rich. Turns out, an economy based on rich people is a volatile economy indeed.
1 of 1 people found this review helpful