Two of the greatest financial fiascos of all time took place at the same time and were instigated by two acquaintances: the Mississippi Bubble, on which John Law at first made a vast fortune and gained sway over French finances; and the South Sea Bubble, launched by Law and Thomas Pitt, Jr.,...

"Collateral damaged" explains how America had turned from a nation of savers into a nation of consumers addicted to debt. Wall Street then used that addiction to create "toxic securities" that threaten to bring about the collapse of the global economy. How can America get its fiscal house in...