When Warren Buffett invests in a company, he is conferring upon that company something very unique: his credibility. Bethany McLean More Quotes by Bethany McLean More Quotes From Bethany McLean Home ownership was the fig leaf for the rise in subprime lending. But that was really about cash-out refinancings, not buying homes. Bethany McLean cash buying home I think synergies are a lot like UFOs: Lots of people claim to have seen them, but few can actually prove they exist. Bethany McLean claims people thinking So Merrill Lynch has launched its first campaign in years to advertise the accomplishments of its investment banking business. The ads feature things like Merrill's recapitalization of Sierra Pacific. I guess including "helping Enron achieve its earnings goals in 1999" might be a little awkward given that Merrill Lynch bankers are currently on trial in Houston for that "accomplishment." Bethany McLean accomplishment goal years The last and most painful irony is that the two longtime rival armies in the securitization market - the investment banks and the GSEs - would end up magnifying each other's sins rather than keeping each other in check. Bethany McLean rivals army two Building a portfolio around index funds isn’t really settling for the average. It’s just refusing to believe in magic. Bethany McLean magic average believe No city embraced privatization more eagerly than Chicago, where I live. Bethany McLean privatization chicago cities ... skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can't - and neither can the legions of advisers and publications that claim they can. That's why building a portfolio around index funds isn't really settling for average. It's just refusing to believe in magic. Bethany McLean average believe past Capital isn't this pile of money sitting somewhere; it's an accounting construct. Bethany McLean somewhere accounting money sitting Privatization of assets that most of us consider public goods - like airports and highways - has a long, often-uncontroversial history. Bethany McLean us like long history The big banks advise cities about whether privatization is a wise choice. They also control the ability of states and cities to access the market for their financing needs. Bethany McLean control choice ability wise In capital we trust. Capital is our savior, our holy grail, our fountain of youth, or at least health, for banks. Bethany McLean fountain youth trust health Fixing Fannie Mae and Freddie Mac in isolation, without looking at the big picture, would be short-sighted. Bethany McLean picture looking big isolation What's good for the financial industry probably isn't good for you. Bethany McLean good you industry financial Proponents of privatization argued that cities and states needed private capital to fund all the upgrades that our decaying infrastructure so desperately needed. Bethany McLean our privatization infrastructure fund Choices of right or wrong are not presented to you in black and white. If they were, I'm sure most people would choose white. Bethany McLean you black-and-white black people The worst story I ever wrote was after the conviction of Jeff Skilling and Ken Lay. My co-author and I wrote a piece for 'Fortune' saying everything's going to be different now. Bethany McLean be-different saying story everything I'm not a big believer in the power of more regulation to fix things. I think it can almost be more dangerous because it provides the illusion that things have been fixed without the substance. Bethany McLean think illusion dangerous power Before Enron, I think people were a bit more naive about the way things worked, and I think Enron pulled the curtain back on unsavoury practices that turned out to be a lot more widespread. Bethany McLean back think people way Google worries - and rightly so - about how hard it is for a big company to come up with the next hot thing. Bethany McLean google company hard hot
