Repo Madness is a no-holds-barred journey through the secretive world of shadow banking and repurchase agreements, exposing a dangerously opaque financial system built to confuse and exploit the public. Why was this an important book for you to write?  

I wrote this book because I didn’t think there was another like it and because I think it is desperately needed. Having read many books about the crisis and finance, I concluded that while underscoring the dysfunction they did not grab the reader by the throat. What was needed was a book not only pointing out problems but also definitively showing once and for all that the system is insane and every day robs us of assets that instead of improving our lives, empower and line the pockets of those who propagate it. The density of this book is deliberate. The goal is to hit hard and educate. I hope my book makes people sit up, pay attention and further educate themselves about this destructive, evil financial system.

What first pulled you down the rabbit hole of repurchase agreements and shadow banking?

In 2006 I was hired as a writer for iMoneyNet. The division of Informa, was tasked with providing money market mutual fund data for the financial industry. My job was to write about trends, etc. Repurchase agreements play a huge role in MMFs. The funds hold them and provide the financial institutions with a platform to trade them. We’re talking trillions of dollars. They were the epicenter of the crisis because they are “hot” money. In other words, they can be liquidated immediately and in turn, are vulnerable to runs. When I saw the opacity and the risky collateral used in them, I questioned the entire market and in turn became obsessed with learning as much as I could about repurchase agreements and other products. I had to disabuse myself of any thoughts that there was anything beneficial about the system. And that I did.

How did you balance being informative without overwhelming readers with technical jargon?

Because I am a literary person, I shared the most compelling quotes and observations I gathered over 15 years of research. I know there is jargon in the book but the fact that it emanates from a clearly put forth idea or observation, I hope, elicits the reader’s understanding of its context.

Were there any moments during your research that made you question whether the system can even be fixed?

This system cannot be fixed. It is too big, too interconnected. President Obama came the closest in 2008.He had a blueprint from Sweden that would have ended the shadow banking system and provided Americans with democratic and inclusive markets. As written in the book, proposals were put forth post-crisis that also could have changed our course. But they were ignored. Now, so many years later, its tentacles are so entrenched that no one can rein them in. Furthermore, not only is the public ignorant about what really goes on but so too, lawmakers who are captured by financial institutions and choose to remain ignorant. No homework, lots of lettuce!

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