These are the endnotes in the submitted Manuscript. As you can see, verifying them should be relatively simple given the included web page URL.

These do not reflect the additional 90 pages of sources — McGH requested I remove to make the book smaller.



Chapter 1
1. Daniel Gross, Pop! Why Bubbles Are Great for the Economy
(New York: HarperCollins, 2007).

Chapter 2
1. Casimir Frank Gierut,
Taxpayers’ Message to Congress: Repeal the Federal Reserve Banks: Pandora’s Box of Criminal Acts (Bunker Hill, Ill.: National Committee to Repeal the Federal Reserve Act, 1983), p. 31.

(The Federal Reserve Act was passed in 1913 on a Sunday two days before Christmas, when most of Congress was on vacation. Wilson’s comments were made years later, regarding the bill he signed into law.)

2. Steve Matthews,
“The Improviser,”
Bloomberg Markets, June 2008;
http://www.bloomberg.com/news/marketsmag/mm_0608_ story2.html

3. The Economic Club of New York, 395th Meeting,
New York City, April 8, 2008;
http://econclubny.org/files/Transcript_Volcker_ April_2008.pdf

4. “Jefferson’s Opinion on the Constitutionality of a National Bank,”
The Avalon Project at Yale Law School;

5. Virtual Tour of Historic Philadelphia,
“Second Bank of the United States/Portrait Gallery: Biddle vs. Jackson”;

6. Roger T. Johnson, “Historical Beginnings of the Federal Reserve,” Federal
Reserve Bank of Boston, December 1999;

7. Stephen Mihm,
A Nation of Counterfeiters: Capitalists, Con Men, andthe Making of the United States
(Cambridge, Mass.: Harvard University Press, 2007).

8. Ibid., p. 6.

9. Johnson, “Historical Beginnings.”

10. Robert F. Bruner and Sean D. Carr,
The Panic of 1907: Lessons Learned from the Market’s Perfect Storm
(Hoboken, N.J.: Wiley, 2007), p. 7.

Chapter 3

1. Robert J. Shiller,
“A Government Hand in the Economy Is as Old as the Republic,”
Washington Post, September 28, 2008, p. B01;

2. Daniel Gross,
Pop! Why Bubbles Are Great for the Economy
(New York: HarperCollins, 2007), p. 29.

3. Jonathan Alter,
The Defining Moment: FDR’s Hundred Days and the Triumph of Hope
(New York: Simon & Schuster, 2006), p. 341.

4. C. L. Harriss, History and Policies of the Home Owner’s Loan Corporation
(Detroit: National Bureau of Economic Research, 1951);

5. “Profitable HOLC,”
Time, April 22, 1946;

6. Alex J. Pollock,
“A 1930s Loan Rescue Lesson,”
Washington Post, March
14, 2008, p. A17;

7. Harriss, History and Policies.

8. Ibid.

9. Alan S. Blinder,
“From the New Deal, a Way Out of a Mess,”
New York Times, February 24, 2008;

10. Harriss, History and Policies.

11. James Butkiewicz,
“Reconstruction Finance Corporation,”
EH.Net Encyclopedia, ed. Robert Whaples, July 20, 2002;

12. Barrie A. Wigmore,
“The Crash and Its Aftermath: A History of Securities Markets in the United States, 1929–1933,” Contributions in Economics and Economic History, no. 58 (1985), p. 540.

Chapter 4

1. The company placed the blame for these losses and its subsequent difficulties on military contracts arranged under the Total Package Procurement (TPP) procedure instituted by former Defense Secretary Robert McNamara, a system “designed to end overrun claims by setting a strict ceiling on the final cost of any project.”

2. The TPP was a fixed contract purchasing program instituted by the Defense Department where defense contractors would bid for military programs based on their expected development and production costs, and the government would pay only up to the contract ceiling. The losses involved in any contract would thus be shouldered by the contractor, with the government liable only for the ceiling price.

3. Nick Barisheff,
“August 15, 1971: Inflation Unleashed,” Financial Sense University, May 11, 2006;

4. “The Biggest Bankruptcy Ever,”
Time, July 6, 1970;

5. ”The Penn Central Reorganization Revisited—Again,”
News and Insights, DLA Piper, January 14, 2008;

6. “Chrysler’s Crisis Bailout,” Time, August 20, 1979;

7. “Chrysler Corporation Loan Guarantee Act of 1979: Remarks on Signing H.R. 5860 into Law,”
January 7, 1980;
http:// www.presidency.ucsb.edu/ws/index.php?pid=32978

Chapter 5

1. Nell Henderson,
“Backstopping the Economy Too Well?”
Washington Post, June 30, 2005, p. D01;

2. Robert T. Parry,
“The October ’87 Crash Ten Years Later,”
Federal Reserve Bank San Francisco Economic Letter 97-32, October 31, 1997;

3. Brett D. Fromson,
“Plunge Protection Team,”
Washington Post, February
23, 1997, p. H01;

4. Zachary Roth,
“Report Shows White House Engineered U.S. Attorney Firings,”
October 1, 2008;

5. Lynn Thomasson and Eric Martin,
“S&P 500 Index Drop Leaves 64 Industries with Losses,”
Bloomberg, November 21, 2008;

6. Carl E. Walsh,
“What Caused the 1990–1991 Recession?”
Economic Review, no. 2, Federal Reserve Bank of San Francisco, 1993;
http://www.frbsf.org/publications/economics/review/ 1993/93-2_34-48.pdf

7. Louis Uchitelle,
“Greenspan’s Authority Curtailed on Interest Rates, Officials Say,”
New York Times, April 8, 1991;
http:// query.nytimes.com/gst/fullpage.html?res=9D0CE0D8113DF93BA35757C0A967958260

8. Paul Krugman,
“Did the Federal Reserve Cause the Recession?”
U.S. News & World Report, April 1, 1991, p. 54;

9. Federal Reserve Bank of New York,
“Historical Changes of the Target Federal Funds and Discount Rates, 1971 to present”;

Chapter 6

1. Alan Greenspan, remarks at the Annual Dinner and Francis Boyer Lecture of the American Enterprise Institute for Public Policy Research, Washington, D.C., December 5, 1996,
aka the “Irrational Exuberance Speech”;

2. Ibid.

3. Daniel Gross,
“Wall Street Throws a Tantrum,”
Newsweek, February 11, 2008;

Gillian Tett, “Markets Throw One Tantrum after Another,”
Financial Times, October 10, 2008;
http://us.ft.com/ftgateway/superpage.ft?news_ id=fto101020081422295531

“Carry On Screaming,”
The Economist, October 9, 2008;

4. Alan Greenspan,
“Risk and Uncertainty in Monetary Policy,”
Remarks at the Meetings of the American Economic Association, San Diego, California, January 3, 2004;

5. Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds, published in 1841; Edwin Lefèvre, Reminiscences of a Stock Operator, published in 1922–1923; and John Kenneth Galbraith, The Great Crash, 1929, published in 1955, are examples.

6. Federal Reserve press release,
November 17, 1998;

7. “The Committee to Save the World: The Inside Story on How the Three Marketeers Have Prevented a Global Economic Meltdown—So Far,”
Time, February 15, 1999;

Chapter 7

1. Minutes of the Federal Open Market Committee,
Meeting of August 20, 1996 (transcript).

2. Alan Greenspan, “Question: Is There a New Economy?”
remarks at the Haas annual Business Faculty Research Dialog, University of California, Berkeley, Calif., September 4, 1998.

3. The full list of imploded mortgage lenders can be found at Mortgage Lender Implode-o-Meter;

Chapter 8

1. Floyd Norris,
“Dow Conquers 5,000 Mark, Riding Surge of Confidence,”
New York Times, November 22, 1995;

2. Ben S. Bernanke, “Deflation: Making Sure ‘It’ Doesn’t Happen Here,”
remarks before the National Economists Club, Washington, D.C., November 21, 2002;

3. Asha Bangalore,
“Housing Market—Another Information Tidbit,”
Northern Trust Company, May 23, 2005;

4. Christopher D. Carroll, Misuzu Otsuka, and Jiri Slacalek,
“How Large Is the Housing Wealth Effect? A New Approach,”
NBER Working Paper No. W12746, December 2006;

5. Alan Abelson,
“Hold the Bubbly,”
Barron’s Monday, January 2, 2006;

Chapter 9

1. Niall Ferguson,
“Wall Street Lays Another Egg,”
Vanity Fair, December 2008;
http://www.vanityfair.com/politics/features/2008/ 12/banks200812

2. Ibid.

3. Ibid.

4. Ibid.

5. Ibid.

6. Anthony Ha,
“Minorities Hit Hard by Foreclosure Crunch,”
Hollister [California] Free Lance, May 3, 2007;

Chapter 10

1. Dawn Kopecki,
“Fannie, Freddie `Insolvent’ after Losses, Poole Says,”
Bloomberg, July 10, 2008;

2. “Barney Frank on Bailouts, Welfare,”
60 Minutes, CBS, December 14, 2008;
http://www.cbsnews.com/stories/2008/12/11/60minutes/main 4663945.shtml

3. Kate Kelly,
“Lost Opportunities Haunt Final Days of Bear Stearns,”
Wall Street Journal, May 27, 2008;

4. Gregory Zuckerman,
“Hedge Funds, Once a Windfall, Contribute to Bear’s Downfall,”
Wall Street Journal, March 17, 2008;

5. Kate Kelly,
“Bear CEO’s Handling of Crisis Raises Issues,”
Wall Street Journal, November 1, 2007;

6. Kelly, “Lost Opportunities.”

7. Henry M. Paulson, Jr.,
“Statement on Treasury and Federal Housing Finance Agency Action to Protect Financial Markets and Taxpayers,”
U.S. Department of the Treasury, September 7, 2008;

8. Heather Timmons,
“Trouble at Fannie Mae and Freddie Mac Stirs Concern Abroad,”
New York Times, July 21, 2008;

9. David Lawder,
“US Treasury to Expand Debt Arsenal as Deficit Rises,”
Reuters, November 4, 2008;

10. David Einhorn,
“Accounting Ingenuity,”
paper delivered at the Ira Sohn Investment Research Conference, May 21, 2008;

11. Yalman Onaran and John Helyar,
“Fuld Sought Buffett Offer He Refused as Lehman Sank,”
Bloomberg, November 10, 2008;

12. Andrew Ackerman,
“Court to Decide Fate of Lehman Contracts,”
Bond Buyer, December 15, 2008;

13. Jesse Eisinger,
“Vintage Whine,”
Portfolio, September 18, 2008;

14. Mike Sunnucks and Chris Casacchia,
“CEO Pay: What Those Involved in the Financial Meltdown Made,”
East Bay Business Journal, September 23, 2008;

“Bailout Should Cut the Cords of Golden Parachutes,”
(Quincy, Mass.) Patriot Ledger, September 23, 2008;
http:// www.patriotledger.com/business/x804155672/OUR-OPINION-Bailout-should-cut-the-chords-of-golden-parachutes

Steve Lohr,
“In Bailout Furor, Wall Street Pay Becomes a Target,”
New York Times, September 23, 2008;

15. Barry Ritholtz,
“Actual Merrill CDO Sale: 5.47% on the Dollar,”
The Big Picture, July 29, 2008;

16. Hugo Dixon and Robert Cyran,
“Vikram Pandit Scores a Great Deal for Citigroup,”
New York Times, December 2, 2008;

Chapter 11

1. Peter S. Goodman,
“Taking Hard New Look at a Greenspan Legacy,”
New York Times, October 8, 2008;

2. Ibid.

3. Ibid.

4. Ibid.

5. Eric Lipton,
“Gramm and the ‘Enron Loophole,’”
New York Times, November 14, 2008;

6. “Blind Faith: How Deregulation and Enron’s Influence over Government Looted Billions from Americans,”
Public Citizen, December 2001;

7. Lipton, “Gramm and the ‘Enron Loophole.’”

8. “Levin Lauds Congressional Approval of Close ‘Enron Loophole’ Law,” press release,
Office of Senator Carl Levin, May 15, 2008;

9. Frank Partnoy,
“Stock Gambling on the Cheap,”
New York Times, December 21, 2000;

10. Lee A. Pickard,
“SEC’s Old Capital Approach Was Tried—and True,”
American Banker 173, no. 153 (August 8, 2008), p. 10;

11. Terry Frieden,
“FBI Warns of Mortgage Fraud ‘Epidemic’: Seeks to Head Off ‘Next S&L Crisis,’”
CNN, September 17, 2004;

12. Alan Greenspan, “Consumer Finance,” remarks at the Federal Reserve System’s Fourth Annual Community Affairs Research Conference,
Washington, D.C., April 8, 2005.

13. Alan Greenspan, “Understanding Household Debt Obligations,” remarks at the Credit Union National Association 2004 Governmental Affairs Conference,
Washington, D.C., February 23, 2004.

14. Binyamin Appelbaum and Ellen Nakashima,
“Banking Regulator Played Advocate over Enforcer,”
Washington Post, November 23, 2008;

15. “FBI Issues Mortgage Fraud Notice in Conjunction with Mortgage Bankers Association,”
press release, March 8, 2007;

16. Greg Ip,
“Did Greenspan Add to Subprime Woes? Gramlich Says Ex-
Colleague Blocked Crackdown on Predatory Lenders despite Growing Concerns,” Wall Street Journal,
June 9, 2007;

17. Ibid.

18. Edmund L. Andrews,
“In Reversal, Fed Approves Plan to Curb Risky Lending,”
New York Times, December 19, 2007;

Chapter 12

1. Frédéric Bastiat, “What Is Seen and What Is Not Seen,” Selected Essays on Political Economy, trans. Seymour Cain (Irvington-on-Hudson, N.Y.: The Foundation for Economic Education, 1995);

2. Boskin Commission,
“Toward a More Accurate Measure of the Cost of Living: Final Report to the Senate Finance Committee from the Advisory Commission to Study the Consumer Price Index,”
December 4, 1996;
http://www.ssa.gov/history/reports/ boskinrpt.html

3. Lee A. Pickard,
“SEC’s Old Capital Approach Was Tried—and True,”
American Banker 173, no. 153 (August 8, 2008);
http://www.american banker.com/article.html?id=20080807ZAXGNH3Y&queryid=2110207978&

4. “Free Market Society,”
transcript of a discussion between David Gergen and Thomas Friedman,
NewsHour, PBS, February 13, 1996;

5. Paul S. Atkins,
“Improving Financial Markets,” remarks to the Vanderbilt University Financial Markets Research Center Conference on Securitization,
Nashville, Tenn., April 17, 2008;

6. Gretchen Morgenson, “Debt Watchdogs: Tamed or Caught Napping?”
New York Times, December 6, 2008;

7. Ibid.

Chapter 13

1. Alan Greenspan, letter to Senator Alfonse D’Amato, October 20, 1998, quoted in
Roger Lowenstein,
When Genius Failed: The Rise and Fall of Long-Term Capital Management
(New York: Random House, 2000).

2. This is the only Wikipedia entry we used in the entire book. The term dates back to the 1600s. [Allard E. Dembe and Leslie I. Boden, “Moral Hazard: A Question of Morality?” New Solutions 10, no. 3 (2000), pp. 257–279.]

3. E. S. Browning,
“Fed Treads Moral Hazard,”
Wall Street Journal, August 13, 2007;
http://online.wsj.com/article/SB11869617082729 5489.html

4. Lowenstein, When Genius Failed.

5. “Questions about the $700 Billion Emergency Economic Stabilization Funds: The First Report of the Congressional Oversight Panel for Economic Stabilization,”
December 10, 2008;

Chapter 14

1. Joseph E. Stiglitz,
“The Economic Crisis: Capitalist Fools,”
Vanity Fair, January 2009;

2. Edmund L. Andrews,
“Greenspan Concedes Error on Regulation,”
New York Times, October 23, 2008;

3. Benjamin Disraeli, Sybil, Book 4, Chapter 5.

4. Eric Lipton and Raymond Hernandez,
“A Champion of Wall Street Reaps Benefits,”
New York Times, December 13, 2008;

5. Ken Brown and David Enrich,
“Rubin, under Fire, Defends His Role at Citi,”
Wall Street Journal, November 29, 2008;

6. Jonathan Fuerbringer,
“Talking Deals; Citicorp Strategy on Glass-Steagall,”
New York Times, March 23, 1989;

7. Alan Katz and Ian Katz,
“Greenspan Slept as Off-Books Debt Escaped Scrutiny,”
Bloomberg, October 30, 2008;

8. Matt Apuzzo,
“US Diluted Loan Rules before Crash,”
Associated Press, December 1, 2008;

9. Ibid.

10. Eric Stein,
“Turmoil in the U.S. Credit Markets: The Genesis of the Current Economic Crisis,” testimony
before the Senate Committee on Banking, Housing and Urban Affairs, October 16, 2008;

11. Ibid.

12. New America Foundation,
“Confronting Economic Meltdown”;

13. Jason Niss,
“Harvey Pitt: Accounts Angel Who Supped with the Devil,”
The Independent (UK), August 11, 2002;
http://www.independent.co.uk/news/business/analysis-and-features/ harvey-pitt-accounts-angel-who-supped-with-the-devil-639450.html

14. John McCain,
“The Free Market Needs New Rules,”
New York Times, July 8, 2002;

15. Arianna Huffington,
“The SEC Goes AWOL,”
Salon, May 14, 2002;

16. Doug Kass,
“Madoff Was Made Up,”
The Street.com, December 12, 2008;

17. Mara Der Hovanesian,
“Nightmare Mortgages,”
BusinessWeek, September 11, 2006;

18. Jeff Manning,
“Chase Mortgage Memo Pushes ‘Cheats & Tricks,’”
The Oregonian, March 27, 2008;

19. Sarah Max,
“Appraisal Fraud: Your Home at Risk; Appraisers Say They’re Being Pressured by Lenders to Inflate Their Estimates of Home Values,”
CNNMoney, June 2, 2005;

20. Tyler Cowen,
“So We Thought. But Then Again…,”
New York Times, January 13, 2008;

21. Colin Barr,
“Paulson Readies the ‘Bazooka’: Big Buyers of Fannie Mae and Freddie Mac Debt Have Been Shying Away. The Treasury Secretary Wants to Coax Them Back,”
CNNMoney.com, September 7, 2008;

22. Jesse Eisinger,
“Overrated: The Subprime-Mortgage Meltdown Could—Finally—End the Credit-Ratings Racket,”
Portfolio, September 2007;

23. Charles Duhigg,
“Pressured to Take More Risk, Fannie Reached Tipping Point,”
New York Times, October 4, 2008;

24. Charles Duhigg,
“At Freddie Mac, Chief Discarded Warning Signs,”
New York Times, August 5, 2008;
http://www.nytimes.com/ 2008/08/05/business/05freddie.html?pagewanted=all.

25. “Shocking Video Unearthed Democrats in Their Own Words Covering Up the Fannie Mae, Freddie Mac Scam That Caused Our Economic Crisis,”
September 26, 2008, YouTube.com;
http://www.youtube.com/watch?v=_MGT_ cSi7Rs

26. Pete Yost,
“How Freddie Mac Halted Regulatory Drive,”
Associated Press, December 7, 2008;

27. Daniel Gross,
“Subprime Suspects: The Right Blames the Credit Crisis on Poor Minority Homeowners. This Is Not Merely Offensive, but Entirely Wrong,”
Slate.com, October 7, 2008;

28. Randall S. Kroszner,
“The Community Reinvestment Act and the Recent Mortgage Crisis,” a talk delivered at the Confronting Concentrated Poverty Policy Forum of the Board of Governors of the Federal Reserve System,
December 3, 2008;
http:// www.federalreserve.gov/newsevents/speech/kroszner20081203a.htm

“The Enduring Challenge of Concentrated Poverty in America,” a joint project of the Community Affairs Office of the Federal Reserve System and the Metropolitan Policy Program at the Brookings Institution;

29. Kelly Curran,
“FDIC’s Bair Sets to Shatter CRA ‘Myth,’”
December 5, 2008;

Ronald D. Orol,
“FDIC: Government Idea Won’t Help People in Need: Community Reinvestment Act Is Not Cause of Financial Crisis, FDIC’s Bair Said,” MarketWatch, December 4, 2008;
http://tinyurl.com/ fdic-cra

30. Robert Gordon,
“Did Liberals Cause the Sub-Prime Crisis?” American
Prospect, April 7, 2008;

31. Matthew Haggman, Rob Barry, and Jack Dolan, “Borrowers Betrayed:
Thousands with Criminal Records Work Unlicensed as Loan Originators,”
Miami Herald, July 20, 2008;

Jack Dolan, Rob Barry, and Matthew Haggman,
“Borrowers Betrayed: Ex-Convicts Active in Mortgage Fraud,”
Miami Herald, July 20, 2008;

32. Brad Linder,
“Arizona Bans Zillow from Offering Real Estate Estimates,”
April 17, 2007;

33. John Cassidy,
“The Minsky Moment,”
The New Yorker, February 4, 2008;
http://www.newyorker.com/talk/comment/2008/02/04/080204taco_talk_ cassidy

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