Linda Elliott's favorite. A classic from the 1990's on the evolution of the credit card business - by New York Times business writer Joe Nocera.

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Product Description

In this entertaining chronicle, Nocera illuminates how the vision and ambition of pioneers like Charles Merrill, Gerry Tsai, Dee Hock, and Peter Lynch reshaped the American economy and brought the rewards--and risks--of financial opportunity to the middle class for the first time in history.

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Product Details

• Amazon Sales Rank: #237870 in Books
• Published on: 1995-11-29
• Original language: English
• Number of items: 1
• Binding: Paperback
• 464 pages

From Publishers Weekly
In an entertaining and edifying history of personal finance, GQ columnist Nocera charts the transformation of the habits of middle-class Americans. The raging inflation of the late 1970s and early '80s, he argues, led many people to abandon thrift and their aversion to risk, attitudes acquired during the Depression. Faced with double-digit inflation, wildly gyrating interest rates and a sinking standard of living, consumers displayed a great willingness to take on debt. The emergence of two-income couples, adjustable-rate mortgages, credit cards and the middle class's growing participation in stocks, mutual funds and money-market accounts define what the author terms the "money revolution" of the past two decades. Nocera, who believes credit overall has been a force for good in American life, fleshes out this colorful chronicle with profiles of finance wizards Charles Merrill of Merrill Lynch; Dee Hock, creator of Visa; and investment broker Charles Schwab. Author tour.
Copyright 1994 Reed Business Information, Inc.

From Library Journal
The business writer of "The Profit Motive" column for GQ magazine, Nocera presents a fascinating and comprehensive history of the evolution of the personal financial products accessible to most Americans today. His story begins with the birth of the credit card 35 years ago and documents the rise of NOW accounts, mutual funds, cut-rate commissions on stock purchases, IRAs, and ATMs. Drawing upon interviews and business news reports, Nocera also includes the stories of the entrepreneurs behind these products-Giannini, founder of Bank of America; Hock, creator of Visa; Kahr, creator of Cash Management Accounts; Merrill, founder of Merrill Lynch; discount broker Schwab; and fund manager Lynch. This book is also a social history of changing American attitudes about money, investing, and the use of credit. Highly recommended for business collections.
Jane M. Kathman, Coll. of St. Benedict, St. Joseph, Minn.
Copyright 1994 Reed Business Information, Inc.

From Booklist
Nocera is an award-winning journalist who writes a personal finance column for GQ magazine. He shows how, in barely more than one generation, the way we think about money and credit and investing and saving has changed forever. Two major events caused this shift. The first was the advent of the credit card and the second was the popularization of the mutual fund. In a series of profiles, beginning with the Bank of America's original distribution of 60,000 credit cards in Fresno, California, in 1958, Nocera chronicles how middle-income Americans changed their financial lives and habits. He demonstrates that a fear of inflation created a "buy-now" mentality and desire to move money out of savings accounts into alternatives. Colorfully portraying such people and institutions that helped bring about these changes as Charles Schwab (discount brokerage), Charles Edward Merrill (Merrill Lynch), Peter Lynch (Fidelity Funds), Money magazine, and individual retirement accounts, Nocera provides a wonderfully readable history--one that is more cultural than economic--of the recent past. David Rouse

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Customer Reviews

From a participant
It may be difficult for many of you younger people to grasp how primitive many of our business practices were back only 40 years ago.

When I started working at Visa in 1973, those thin tissue copies of sales receipts were manually taken to the merchant's bank each evening and placed in a "drop-box". Then they were "processed" by the merchant's bank which really meant they were physically sorted into piles to be copied and sent by mail to each of the banks around the country that had issued the card to the customer. In addition, a calculator tape was added up to total the receits to be sent to each issuing bank.

Days or weeks later, a bank draft was sent by the issuer to pay for that shoe-box of receipts and then the customer was billed. It took on average over 40 days before the charge actually appeared on the customer's bill. International sales could take up to three months.

This was replaced by an electronic system that could send millions of sales transactions overnight. Your first impression of this description might well be that this was only important to some banks so who cares. The reality is that it permitted banks to loosen their procedures for issuing credit cards so that most of the middle class was able for the first time to buy goods away from home easily and simply. In 1973, less than 2% of Americans had a card that permitted them to buy goods and services when not dealing with a local merchant. Ten years later over 50% had such cards.

There were a number of revolutions that took place in our society from the mid-60s to the mid-70s and this tells the story wonderfully of a few financial revolutions that had tremendous benefits for the general public. You will be both entertained and informed by this book and what more can you ask of a book?

a fun history of the financial services industry
Not a complete and in depth analytical history of banking, but rather a "pop-history" of consumer finance (But the history leg work is there).A look at the innovators and their innovations that changed how we conduct our personal business....good bathroom/travel read;or as supplementary work for a report. The writer does a good job of staying "neutral" but does indeed claim to be pro-consumption (and it shows by tone). But a good fun read anyways.

Great true story, well written
This story of the revolution in the credit & investment industries; & it's powerful impact on society.