Wall Street by Doug Henwood

In this "down and dirty" diatribe about American finance, journalist and New York radio personality Henwood makes no attempt at a balanced portrayal of Wall Street. He aims to "embarrass official wisdom" and expose the financial world's weaknesses, perhaps too gloatingly. Intemperate phrasing abounds, e.g., "real estate is based on milking wealth from land and tenants."

Admittedly, Henwood flails at both the Left and the Right, and he doesn't hide his biases, but he lovingly quotes Keynes and Marx a little too often. Henwood doesn't claim to be offering any practical investment advice; nor does he present any solutions to the problems against which he fulminates. The result is a difficult, divisive, unpleasant, querulous, and uninstructive book that larger business collections might tolerate


This book gives a pretty decent macroeconomic view of Wall Street. Henwood explains stocks, bonds, derivatives, currencies, the Federal Reserve, Bretton Woods, the (in)efficiency of markets and many other topics. He then interprets what these things mean from a leftist perspective. The financial world is heavily right wing and accuses the left wing of not understanding how economics work and thus why the right wing is right about economics. This book will demystify acronyms like LIBOR, GDP and CAPM, and explain to you in Wall Street terminology how the rich are robbing the working class in this country (and the world) blind. Henwood's book, like Marx's Capital, is at heart an economic treatise with political ideas sandwiched in between the economic data and analysis.

A scathing dissection of the wheeling and dealing in the world's greatest financial center. Spot rates, zero coupons, blue chips, futures, options on futures, indexes, options on indexes. The vocabulary of a financial market can seem arcane, even impenetrable. Yet despite its opacity, financial news and comment is ubiquitous.

Major national newspapers devote pages of newsprint to the financial sector and television news invariably features a visit to the market for the latest prices. Does this prodigious flow of information have significance for anyone except the tiny percentage of people who have significant holdings of stocks or bonds? And if it does, can non-specialists ever hope to understand what the markets are up to? To these questions Wall Street answers an emphatic yes. Its author Doug Henwood is a notorious scourge of the stock exchange in the pages of his acerbic publication Left Business Observer.

The Newsletter has received wide acclamation from J.K. Galbraith, among others, and occasional less favorable comment. Norman Pearlstine, then executive editor of the Wall Street Journal, lamented, `You are scum ... it's tragic that you exist.'

With compelling clarity, Henwood dissects the world's greatest financial center, laying open the intricacies of how, and for whom, the market works. The Wall Street which emerges is not a pretty sight. Hidden from public view, the markets are poorly regulated, badly managed, chronically myopic and often corrupt. And though, as Henwood reveals, their activity contributes almost nothing to the real economy where goods are made and jobs created, they nevertheless wield enormous power. With over a trillion dollars a day crossing the wires between the world's banks, Wall Street and its sister financial centers don't just influence government, effectively they are the government.

If Karl Marx wrote as well as Doug Henwood, who knows what course history might have taken?


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