A Capitalist's Lament: How Wall Street Is Fleecing You and Ruining America

In an election year in which educated Americans must be bemoaning that this was not what the Founding Fathers had in mind when our political system was created, Leland Faust gives us a book to explain how Wall Street is not functioning in a way that Adam Smith had in mind when he wrote of the invisible hand and The Wealth of Nations. Certainly after the economic meltdown of 2008 -- and the sickening decision of the U.S. government to bail out malefactors like Goldman Sachs who had helped create the mess -- most people who take the time to give it thought suspect that there is something very wrong on Wall Street. But most works criticizing Wall Street are long on populist rhetoric and short on facts. Faust writes as an insider who ran a money management firm, and loads his book with the evidence, showing rather than just telling, supplying the reader with the hard evidence of exactly how Wall Street's biggest stakeholders -- the big investment banks and investment managers, the professional services firms who cling to them like leeches, and the sycophantic financial press -- mislead investors, profit far beyond their merits, and have the hubris to claim that they are a necessary part of building wealth for everyone. The Wall Street of today is parasitic, not catalytic, to the world's economy, and Faust's book will arm you with plenty of good examples of exactly why that is the case. But Faust remains a staunch capitalist, and tempers his grim tale with some ideas on what would help make things better. He also ends the book with practical advice for how to avoid the worst of Wall Street because, underneath it all, our market economy is still a great thing and better than the alternatives, if you are wise enough to avoid the avaricious and self-aggrandizing villains who are the targets of this thoughtful and timely book.

As a person with a keen interest in the stock market I could not wait to read this book to enhance my knowledge of Wall Street. I was not disappointed! I could not put it down. It reads better than many of the fiction novels I have read and exposes key issues and problems with Wall Street which makes one much more skeptical of what investors hear from the media and the Street on a day in, day out basis. I have always felt much of the hype and recommendations espoused by brokerage houses and the Street were questionable, but after reading this book I am convinced. Mr. Faust certainly lays it out in a clear and well documented format that leaves little question about the facts. What did I really learn from this besides what I have mentioned above? Do your OWN homework and make your OWN decisions because in the long run it's your money and your "wins & losses" should be on your own intelligent decision and not someone who stands to gain purely from their suggestion and sale of an idea or stock to you. A worthwhile read for anyone who invests in the market or just has an interest in the U.S. financial markets.

If you think you already know all of Wall Street’s dirty tricks you’ll be amazed at how much more you will learn by reading Leland Faust’s A Capitalist’s Lament, a book that will grow in importance as America faces a new administration and uncertain prospects for the regulation of financial services. Faust’s meticulously researched book goes well beyond the moral corruption and manipulation exposed following the Great Recession to show the decades-long pattern of criminal behavior and a “heads I win, tails you lose” mindset that cheats investors big and small, destroying America in the process.Brokerage firms play fast and loose with the math in their sales literature or hide fees in the products they sell. For example, Faust shows how these brokerages institutionalize the process of confusing investors into overpaying. They push no-load mutual funds that are commission-free but instead carry an underplayed management fee that effectively is higher than a commission would have been. They take advantage of unsophisticated investors by pushing high commission, tax-deferred annuities onto clients who don’t need them. Faust knows all the tricks and does the math for us as he exposes the fine print in this ultimate con job.No part of this ecosystem is innocent. Investment bankers gamble with investors’ money without carrying much of the risk. Hedge fund managers – even the legit ones - earn billions when their funds underperform. Rating agencies, industry analysts and the huckster-prone financial media all play their part, not scrutinized amid blatant conflicts of interest.Among the most surprising things about A Capitalist’s Lament is that it was not written by an earnest and angry radical but by an earnest and angry and extremely knowledgeable industry insider who solidly believes in capitalism but is horrified by its shadowy side. Faust researched this book over his four decades in the business, even sharing anecdotes about opportunities he was offered to participate in questionable deals.So everybody knows that Wall Street is run by crooks but everybody also needs to know where to invest their money. Fortunately, Faust does not leave readers hanging. In addition to warning of the hazards of short selling, derivatives, options and over-leveraging, he offers a thoughtful 20-question checklist for choosing an advisor or investment firm and pages of reasoned, wise advice. Now more than ever, we need such financial sanity.

I read this book for no other reason than to understand the investment world a little more before I begin my career and have money to put away. Certainly brings to light just how much Wall Street is getting away with and ruining the capitalist system we currently have. Very informative on bringing to light the malpractices of those in the finance world and what to avoid as someone looking to put savings somewhere. By no means is this a how to guide, but useful nonethless. Some information gets repetitive but then again it only serves to drive home the large faults at the top of our system.