The Faber Report: How Wall Street Really Works-And How You Can Make It Work For You

David Faber's The Faber Report is a scathing critique of the greed that permeates all levels of Wall Street, from analysts and investment bankers to money managers and brokers. Faber, who has been covering Wall Street for some 15 years--first as an editor and reporter at Institutional Investor and then, more famously, as a correspondent on CNBC--relates story after story about the conflict of interest that runs rampant between Wall Street and the companies it represents and the investing public. Organized into chapters such as "Why I Hate Analysts," "Why I Love Short Sellers," and "The Truth About Your Broker," the book mixes firsthand observations with advice to individual investors. For example, in the chapter on stock analysts, he advises investors to "Use mass upgrades and downgrades as a contrary indicator" and "Give less credence to positive calls, more credence to negative calls." While some readers may be put off by Faber's self-congratulatory tone, most individual investors would do well to consider Faber's main point about what really happens on Wall Street every day. This book should especially resonate with fans of CNBC's Squawk Box. --Harry C. Edwards