Wall St. Getting Worse? Bartiromo Calls Out 'Dangerous' Claims By Lewis
Author Michael Lewis stopped by "Fox and Friends" this morning to sound the alarm about how little has changed on Wall Street, 25 years after he wrote "Liar's Poker."
In that book, Lewis detailed what he observed as a bond salesman in the late 80s. It came out a few years after Gordon Gekko famously declared "greed is good" in the movie "Wall Street."
Lewis said what is now worse about Wall Street is that financial firms have gotten much better at "disguising" what they're doing.
"It's just a lot of machination designed to part you from your money. A lot of unnecessary intermediation would be the polite way to put it," he said, adding that the biggest problem now is the notion of "too big to fail."
He said gigantic banks now believe that even if they go down, the government will have to come in to rescue them.
"This is supposed to be the heart of capitalism and it resists capitalism," said Lewis.
Brian Kilmeade noted that the average person may look at the Dow, which is now above 17,000, and assume things must be going well in the country.
Lewis said the Dow's growth is "deceptive," and driven by the Federal Reserve keeping interest rates at near zero for five years.
Despite the run-up, Lewis called it "disturbing" that household participation in the market is going down because "people don't trust it anymore."
Watch the full interview above.
Later in the show, Maria Bartiromo hit back at Lewis (below), arguing that his statements are "dangerous" and give people a false impression about the stock market.
"I like Michael Lewis' work a lot, but I think he's trying to sell books. ... As an individual investor, if you are shunning the stock market because you think you're dealing with crooks, you're absolutely making a mistake. You're leaving money on the table, you're not thinking about your long-term 401(k) and the fact that the best wealth creation happens by owning stocks," she said.
She argued that the current regulatory environment has slowed the economy by forcing Wall Street firms to "sit on money."
Catch Maria weekdays on "Opening Bell" at 9a ET on Fox Business Network and on "Sunday Morning Futures," Sundays at 10a ET on Fox News Channel.