Over the past three years, the notorious @GSElevator Twitter feed has offered a hilarious, shamelessly voyeuristic look into the real world of international finance. Hundreds of thousands followed the account, Goldman Sachs launched an internal investigation, and when the true identity of the man behind it all was revealed, it created a national media sensation—but that’s only part of the story.
Where @GSElevator captured the essence of the banking elite with curated jokes and submissions overheard by readers, Straight to hell adds John LeFevre’s own story—an unapologetic and darkly funny account of a career as a globe-conquering investment banker spanning New York, London, and Hong Kong. Straight to Hell pulls back the curtain on a world that is both hated and envied, taking readers from the trading floors and roadshows to private planes and after-hours overindulgence. Full of shocking lawlessness, boyish antics, and win-at-all-costs schemes, this is the definitive take on the deviant, dysfunctional, and absolutely excessive world of finance.
If you want to build a better future, you must believe in secrets.
The great secret of our time is that there are still uncharted frontiers to explore and new inventions to create. In Zero to One, legendary entrepreneur and investor Peter Thiel shows how we can find singular ways to create those new things.
Thiel begins with the contrarian premise that we live in an age of technological stagnation, even if we’re too distracted by shiny mobile devices to notice. Information technology has improved rapidly, but there is no reason why progress should be limited to computers or Silicon Valley. Progress can be achieved in any industry or area of business. It comes from the most important skill that every leader must master: learning to think for yourself.
Doing what someone else already knows how to do takes the world from 1 to n, adding more of something familiar. But when you do something new, you go from 0 to 1. The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace. They will escape competition altogether, because their businesses will be unique.
Zero to One presents at once an optimistic view of the future of progress in America and a new way of thinking about innovation: it starts by learning to ask the questions that lead you to find value in unexpected places.
Is it culture, the weather, geography? Perhaps ignorance of what the right policies are?
Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence?
Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities.
The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories.
Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including:
- China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West?
- Are America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority?
- What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the interplay between inclusive political and economic institutions?
Why Nations Fail will change the way you look at—and understand—the world.
Every year, thousands of eager college graduates are hired by the world's financial giants, where they're taught the secrets of making obscene amounts of money-- as well as how to dress, talk, date, drink, and schmooze like real financiers.
In the vein of Martin Scorsese's film The Wolf of Wall Street, YOUNG MONEY is the inside story of this well-guarded world. Kevin Roose, New York magazine business writer and author of the critically acclaimed The Unlikely Disciple, spent more than three years shadowing eight entry-level workers at Goldman Sachs, Bank of America Merrill Lynch, and other leading investment firms. Roose chronicled their triumphs and disappointments, their million-dollar trades and runaway Excel spreadsheets, and got an unprecedented (and unauthorized) glimpse of the financial world's initiation process.
Roose's young bankers are exposed to the exhausting workloads, huge bonuses, and recreational drugs that have always characterized Wall Street life. But they experience something new, too: an industry forever changed by the massive financial collapse of 2008. And as they get their Wall Street educations, they face hard questions about morality, prestige, and the value of their work.
YOUNG MONEY is more than an exposé of excess; it's the story of how the financial crisis changed a generation-and remade Wall Street from the bottom up.
Pulitzer Prize–winner James B. Stewart shows for the first time how four of the eighties’ biggest names on Wall Street—Michael Milken, Ivan Boesky, Martin Siegel, and Dennis Levine —created the greatest insider-trading ring in financial history and almost walked away with billions, until a team of downtrodden detectives triumphed over some of America’s most expensive lawyers to bring this powerful quartet to justice.
Based on secret grand jury transcripts, interviews, and actual trading records, and containing explosive new revelations about Michael Milken and Ivan Boesky written especially for this paperback edition, Den of Thieves weaves all the facts into an unforgettable narrative—a portrait of human nature, big business, and crime of unparalleled proportions.
This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.
This book contains the following topics that will guide you through the path of Technical Analysis Of Stock Market.
Table of Contents
A Good Trader
Traders vs. Investors
Types of Traders
Traders Type (Time basis).
Position Traders –
What is a Trend?
What are types of Trends?
Advantages of Trend Trading:
What is Swing Trading?
How does Swing Trading work?
What are the advantages of Swing Trading?
The How, When and What of a Trade
What Kind of a Trader Are You?
How to Trade Like a Master
Trading Only High Probability Opportunities
Find a Shoe That Fits Your Size.
Timing the Markets.
Your Trade Should Fit the Type of Stock You are Trading
Supply Choke or 'Punting' Markets
How Many Open Trades at a Time?
Risk Control: How to Stop Losses and Protect Your Gains
Why Some Traders Don't Use Stop Losses
Trailing Stop Loss
Stop Losses for Volatile Stocks
Using Stop Losses to Protect Your Profits
Stop Losses When Markets Open with Gaps
Stop Losses When a Stock is Being Manipulated
The Art Of Reading Charts
Overbought/ Oversold Overload
Gaps in Candlestick Charts
Weekly Charts-- For a Longer Trading Position
Using Hourly Charts 41
Be With the Stock On the 'West Side' and Let it Go On the 'East Side'.
Never Fight the Market
Don't Trade When You Don't Have Any Edge
Trading Pitfalls-- and How to Avoid Them
How much should you trade?
Buy High, Sell Higher
Going for the Jugular Trade
Trade With What You Can Afford to Lose
When Day Trading, Be a Fruit Vendor.
Winning the Game of Odds
Secrets of Open Interest
Riding the Longer Cycle
Channel Trading Systems
Improving Your Odds
Trading the Different Types of Rallies
Short Covering Rally
Long Term Rally
The Successful Trader's Psychology
Trading Replicates the Behaviour of Fish
Stop Blaming Others
Don't Have Preconceived Notions About the Market's Direction
Reading the Mind of Others Who are Trading Your Stocks
Beware the Trading Minefields
Trading Secrets from the Masters
The Silo Effect asks a basic question: why do humans working in modern institutions collectively act in ways that sometimes seem stupid? Why do normally clever people fail to see risks and opportunities that later seem blindingly obvious? Why, as Daniel Kahnemann, the psychologist put it, are we sometimes so “blind to our own blindness”?
Gillian Tett, “a first-rate journalist and a good storyteller” (The New York Times), answers these questions by plumbing her background as an anthropologist and her experience reporting on the financial crisis in 2008. In The Silo Effect, she shares eight different tales of the silo syndrome, spanning Bloomberg’s City Hall in New York, the Bank of England in London, Cleveland Clinic hospital in Ohio, UBS bank in Switzerland, Facebook in San Francisco, Sony in Tokyo, the BlueMountain hedge fund, and the Chicago police. Some of these narratives illustrate how foolishly people can behave when they are mastered by silos. Others, however, show how institutions and individuals can master their silos instead.
“Highly intelligent, enjoyable, and enlivened by a string of vivid case studies….The Silo Effect is also genuinely important, because Tett’s prescription for curing the pathological silo-isation of business and government is refreshingly unorthodox and, in my view, convincing” (Financial Times). This is “an enjoyable call to action for better integration within organizations” (Publishers Weekly).
Options are great for novice and experienced investors, great for all investors who wish to expand their portfolios and make money in stock market.Learn profitable and powerful options trading strategies which will lower your risk and increase your profits in today's market.
This book contains the following topics that will guide you through the path of Options Trading Strategy.
Chapter 1 Introduction to Options
The Importance of Learning Options
The Difficult Side of Options
Chapter 2a: Advantages of Options Trading
Hedging and Speculation
The Good and the Bad Sides of Options Trading
Chapter 2b: Nature and Characteristics of Options
Options Trading Parties
What is Call Option?
What is Put Option?
The Variants of Option
Option Trade Transacting versus Closing Out
Option Pricing and How It is Done
Chapter 3: Important Options Terms to Remember
Chapter 4: Should I Buy Futures or Should I Buy Options?
Buying Futures, Buying Options
Buying Options: Short Term and Long Term
Puts and Call – Buy Them but Don’t Sell Them
How to Make Money when the Market is Falling
Buying Puts for Surefire Gains
Buying Calls to Profit From an Up Trend
How to Profit when Buying Calls from a Bottoming Out Market
Chapter 5: How to Trade F&Os in Several Market Conditions
What It Means When You Buy in Wild Swings
Buying When Risk Aversion is High
Playing the Bull Market
How to Play in the Bear Market
Direction less Markets
Playing Range Bound Markets
Playing Intra day Moves
Being a Compulsive Trader
Trading a Falling Market Caused by Crazy Valuations
Trading a Falling Market Caused by Negative News
Trading a Rising Market Caused by Increasing Interest
Selling Puts Amidst High Tendency of Risk Aversion
Trading Accumulation and Distribution
Chapter 6: Understanding the Golden Rules of F&O Trading
Start by Having a Plan
Each Single Stock is Not a Trade
Don’t Buy a Mercedes if What You Can Afford is a Motorcycle!
Set Your Trades to a Maximum Limit of Three at Any Single Time
Don’t Trade Stocks That Have No Heavy Liquidity
Trade According to the Trend
The Value of Timing
Trade the Body and not the Head of the Price Move
Always Keep Track Of Your Emotions
Learn the Value of Being Consistent and Disciplined
Reality as Opposed to One’s Belief
A Trade is Born out of Positive Expectation that is Backed by a Positive Trend
Bread and Butter Money must be for Bread and Butter Alone
Be Contrarian in Your Thinking and Not When You Go Trading
Be Patient When You Find a Trade But Not When You Cut Losses
Emotions versus F&O Trading
The Value of Moderation in F&O Trading
Having a Profit Then Going Out With a Loss
When You Average a Loss in a Futures Position, You Are Simply Burning Money!
Avoid Watching TV!
The Unique Personality of Stock Futures and Options
Getting Different Results Mean Doing Things Differently
Buy Options in Low Cost/Premium
Buy Options When a Stock, a Sector or the Market is Trending Very Strongly
The Reality after Waking up from a Dream
Open Interest – How Real Can It Be
Understanding if the Option Price is Right
So What is the Real Deal on Options
Understanding How Options Really Work
Calls and Puts
Long and Short
European and American Options
Futures or Options?
Daryl R. Conner, founder and chairman of the consulting firm Conner Partners, is a leading expert on change management. He has served as “change doctor” for clients that include non-profit enterprises, government agencies and administrations, and Fortune 500 companies in an array of industries such as Abbott Laboratories, PepsiCo, American Express, Catholic Healthcare West, JPMorgan Chase, and the U.S. Navy.
Based on Conner’s long-term research and his decades of consulting experience, Managing at the Speed of Change uses simple, easy-to-understand language and elegant visuals to explore the dynamics of change, and in doing so, teaches readers
• why major change is difficult to assimilate
• what distinguishes resilient individuals from those who suffer future shock
• how and why resistance forms
• how people become committed to change
• why organizational culture is so important to the success of change
• the roles most central to change in organizational settings
• why powerful teamwork is at the heart of achieving change objectives, and how to foster it
In this pioneering book, updated for the twenty-first century, Conner demonstrates how both individuals and organizations can develop the capacity not only to endure change but to thrive on it.
From the Hardcover edition.
all the devils are here."
-Shakespeare, The Tempest
As soon as the financial crisis erupted, the finger-pointing began. Should the blame fall on Wall Street, Main Street, or Pennsylvania Avenue? On greedy traders, misguided regulators, sleazy subprime companies, cowardly legislators, or clueless home buyers?
According to Bethany McLean and Joe Nocera, two of America's most acclaimed business journalists, the real answer is all of the above-and more. Many devils helped bring hell to the economy. And the full story, in all of its complexity and detail, is like the legend of the blind men and the elephant. Almost everyone has missed the big picture. Almost no one has put all the pieces together.
All the Devils Are Here goes back several decades to weave the hidden history of the financial crisis in a way no previous book has done. It explores the motivations of everyone from famous CEOs, cabinet secretaries, and politicians to anonymous lenders, borrowers, analysts, and Wall Street traders. It delves into the powerful American mythology of homeownership. And it proves that the crisis ultimately wasn't about finance at all; it was about human nature.
Among the devils you'll meet in vivid detail:
• Angelo Mozilo, the CEO of Countrywide, who dreamed of spreading homeownership to the masses, only to succumb to the peer pressure-and the outsized profits-of the sleaziest subprime lending.
• Roland Arnall, a respected philanthropist and diplomat, who made his fortune building Ameriquest, a subprime lending empire that relied on blatantly deceptive lending practices.
• Hank Greenberg, who built AIG into a Rube Goldberg contraption with an undeserved triple-A rating, and who ran it so tightly that he was the only one who knew where all the bodies were buried.
• Stan O'Neal of Merrill Lynch, aloof and suspicious, who suffered from "Goldman envy" and drove a proud old firm into the ground by promoting cronies and pushing out his smartest lieutenants.
• Lloyd Blankfein, who helped turn Goldman Sachs from a culture that famously put clients first to one that made clients secondary to its own bottom line.
• Franklin Raines of Fannie Mae, who (like his predecessors) bullied regulators into submission and let his firm drift away from its original, noble mission.
• Brian Clarkson of Moody's, who aggressively pushed to increase his rating agency's market share and stock price, at the cost of its integrity.
• Alan Greenspan, the legendary maestro of the Federal Reserve, who ignored the evidence of a growing housing bubble and turned a blind eye to the lending practices that ultimately brought down Wall Street-and inflicted enormous pain on the country.
Just as McLean's The Smartest Guys in the Room was hailed as the best Enron book on a crowded shelf, so will All the Devils Are Here be remembered for finally making sense of the meltdown and its consequences.
In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Until the welcomed arrival of authors Josh Rosenbaum and Josh Pearl, no one had taken the time to properly codify the lifeblood of the corporate financier?s work?namely, valuation, through all of the essential lenses of an investment banker. With the release of Investment Banking, Second Edition: Valuation, Leveraged Buyouts, and Mergers & Acquisitions, Rosenbaum and Pearl once again have written the definitive book that they wish had existed when they were trying to break into Wall Street. The Second Edition includes both the technical valuation fundamentals as well as practical judgment skills and perspective to help guide the science. This book focuses on the primary valuation methodologies currently used on Wall Street: comparable companies analysis, precedent transactions analysis, discounted cash flow analysis, and leveraged buyout analysis. With the new fully revised edition, they have added the most comprehensive, rigorous set of intuition-building and problem-solving ancillaries anywhere?all of which promised to become essential, knowledge enhancing tools for professionals, and professors and students.
For those who purchase this edition of the book, there are options to purchase the Valuation Models separately (9781118586167), and to also consider purchase of the Investing Banking Workbook (9781118456118) and Investment Banking Focus Notes (9781118586082) for further self-study.
Every three months, 14,000 publicly traded companies report sales and profits to their shareholders. Nothing is more important in these quarterly announcements than earnings per share, the lodestar that investors—and these days, that’s most of us—use to judge the health of corporate America. earnings per share is the number for which all other numbers are sacrificed. It is the distilled truth of a company’s health.
Too bad it’s often a lie.
The Number provides a comprehensive overview of how Wall Street and corporate America lost their way during the great bull market that began in 1982. With fresh insight, wit, and a broad historical perspective, Berenson puts the accounting fraud of the past three years in context, describing how decades of lax standards and shady practices contributed to our current economic troubles.
As the bull market turned into a bubble, Wall Street became utterly focused on “the number,” companies’ quarterly earnings. Along the way, the market lost track of what companies are really supposed to do—build profitable businesses with sustainable futures. With their pay soaring, and increasingly tied to their companies’ shares, executives were more than happy to give Wall Street the predictable earnings reports it wanted, what-ever the reality of their businesses. Accountants, analysts, money managers, and individual investors played along, while the Securities and Exchange Commission found itself overwhelmed and underequipped to cope with the earnings game.
The Number offers a unified vision of how today’s accounting scandals reflect a broader system failure. As long as investors remain too focused on the number, companies will find ways to manipulate it. Alex Berenson gives anyone who has ever invested in—or worked for—a public company the tools necessary to see beyond the cult of the number, understand accounting and its limits, and recognize patterns that can lead to fraud. After two decades of stock market hype, The Number offers a welcome dose of truth about the way Wall Street and corporate America really work.
From the Hardcover edition.
The Medici Bank was the most powerful banking house of the 15th century. Headquartered in Florence, Italy, it established branches in Rome, Venice, Geneva, Lyons, Bruges, London, and many other cities. The bank served as financial agent of the Church, extended credit to monarchs, and facilitated international trade in Western Europe. By their personal influence and the use of their profits, the owners and administrators of the bank contributed significantly to the development of Florence as the greatest center of the Renaissance.
This new edition devotes an entire chapter to a method of evaluating mutually exclusive projects without resorting to any imposed conditions. Two chapters not found in the previous edition address special topics in finance, including a novel and innovative way to approach amortization tables and the time value of money for cash flows when they increase geometrically or arithmetically. This new edition also features helpful how-to sections on Excel applications at the end of each appropriate chapter.
Authors Dall W. Forsythe and Donald J. Boyd outline the budgeting process through a series of memos from a budget director to a newly elected governor—a format that helps readers with little or no background understand complicated financial issues. They cover all of the steps of budget preparation, from strategy to execution, explaining technical vocabulary, and discussing key topics including baseline budgeting, revenue forecasting, and gap-closing options.
Forsythe and Boyd bring fresh insights into such issues as the importance of a multiyear strategic budget plan, the impact of the business cycle on state budgets, the tactical problems of getting budgets adopted by legislatures, and, of course, the relationship between governor and budget officer. Memos to the Governor is a painless, practical introduction to budget preparation for students of and practitioners in public administration and public-sector financial management.
Niall Ferguson's House of Rothschild: Money's Prophets 1798-1848 was hailed as a "great biography" by Time magazine and named one of the best books of the year by Business Week. Now, with all the depth, clarity and drama with which he traced their ascent, Ferguson - the first historian with access to the long-lost Rothschild family archives - concludes his myth-breaking portrait of once of the most fascinating and power families of all time.
From Crimea to World War II, wars repeatedly threatened the stability of the Rothschilds' worldwide empire. Despite these many global upheavals, theirs remained the biggest bank in the world up until the First World War, their interests extending far beyond the realm of finance. Yet the Rothschilds' failure to establish themselves successfully in the United States proved fateful, and as financial power shifted from London to New York after 1914, their power waned.
"A stupendous achievement, a triumph of historical research and imagination."—Robert Skidelsky, The New York Review of Books
"Niall Ferguson's brilliant and altogether enthralling two-volume family saga proves that academic historians can still tell great stories that the rest of us want to read."—The New York Times Book Review
"Superb ... An impressive ... account of the Rothschilds and their role in history."—Boston Globe
Niall Ferguson's new book The Square and the Tower: Networks and Power, from the Freemasons to Facebook will be published in January 2018.
A BUSINESS WEEK BEST BOOK OF THE YEAR
In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their fall.
When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself. The dramatic story of Long-Term’s fall is now a chilling harbinger of the crisis that would strike all of Wall Street, from Lehman Brothers to AIG, a decade later. In his new Afterword, Lowenstein shows that LTCM’s implosion should be seen not as a one-off drama but as a template for market meltdowns in an age of instability—and as a wake-up call that Wall Street and government alike tragically ignored.
From a master chronicler of legal and financial misconduct, a magnificent investigation nine years in the making, God’s Bankers traces the political intrigue of the Catholic Church in “a meticulous work that cracks wide open the Vatican’s legendary, enabling secrecy” (Kirkus Reviews). Decidedly not about faith, belief in God, or religious doctrine, this book is about the church’s accumulation of wealth and its byzantine financial entanglements across the world. Told through 200 years of prelates, bishops, cardinals, and the Popes who oversee it all, Gerald Posner uncovers an eyebrow-raising account of money and power in one of the world’s most influential organizations.
God’s Bankers has it all: a revelatory and astounding saga marked by poisoned business titans, murdered prosecutors, and mysterious deaths written off as suicides; a carnival of characters from Popes and cardinals, financiers and mobsters, kings and prime ministers; and a set of moral and political circumstances that clarify not only the church’s aims and ambitions, but reflect the larger tensions of more recent history. And Posner even looks to the future to surmise if Pope Francis can succeed where all his predecessors failed: to overcome the resistance to change in the Vatican’s Machiavellian inner court and to rein in the excesses of its seemingly uncontrollable financial quagmire. “As exciting as a mystery thriller” (Providence Journal), this book reveals with extraordinary precision how the Vatican has evolved from a foundation of faith to a corporation of extreme wealth and power.
Our current economic path is coming to an end. The signposts are all around us: sluggish growth, rising inequality, stubbornly high pockets of unemployment, and jittery financial markets, to name a few. Soon we will reach a fork in the road: One path leads to renewed growth, prosperity, and financial stability, the other to recession and market disorder.
In The Only Game in Town, El-Erian casts his gaze toward the future of the global economy and markets, outlining the choices we face both individually and collectively in an era of economic uncertainty and financial insecurity. Beginning with their response to the 2008 global crisis, El-Erian explains how and why our central banks became the critical policy actors—and, most important, why they cannot continue is this role alone. They saved the financial system from collapse in 2008 and a multiyear economic depression, but lack the tools to enable a return to high inclusive growth and durable financial stability. The time has come for a policy handoff, from a prolonged period of monetary policy experimentation to a strategy that better targets what ails economies and distorts the financial sector—before we stumble into another crisis.
The future, critically, is not predestined. It is up to us to decide where we will go from here as households, investors, companies, and governments. Using a mix of insights from economics, finance, and behavioral science, this book gives us the tools we need to properly understand this turning point, prepare for it, and come out of it stronger. A comprehensive, controversial look at the realities of our global economy and markets, The Only Game in Town is required reading for investors, policymakers, and anyone interested in the future.
Praise for The Only Game in Town
“The one economic book you must read now . . . If you want to understand [our] bifurcated world and where it’s headed, there is no better interpreter than Mohamed El-Erian.”–Time
“A grand tour of the challenges we face, along with ideal solutions and more likely outcomes . . . We desperately need a system in which the central banks are no longer the only game in town.”—Steven Rattner, The New York Times Book Review
“A must-read from one of the most astute financial analysts of our time.”—Walter Isaacson, author of Steve Jobs
“El-Erian’s gift for clarity and his use of compelling examples make important economic issues accessible.”—Anne-Marie Slaughter, president and CEO, New America
“[A] highly intelligent analysis.”—Fareed Zakaria, CNN (book of the week)
When the nation’s economy foundered in 2008, blame was directed almost universally at Wall Street. But Robert B. Reich suggests a different reason for the meltdown, and for a perilous road ahead. He argues that the real problem is structural: it lies in the increasing concentration of income and wealth at the top, and in a middle class that has had to go deeply into debt to maintain a decent standard of living.
Persuasively and straightforwardly, Reich reveals how precarious our situation still is. The last time in American history when wealth was so highly concentrated at the top—indeed, when the top 1 percent of the population was paid 23 percent of the nation’s income—was in 1928, just before the Great Depression. Such a disparity leads to ever greater booms followed by ever deeper busts.
Reich’s thoughtful and detailed account of where we are headed over the next decades reveals the essential truth about our economy that is driving our politics and shaping our future. With keen insight, he shows us how the middle class lacks enough purchasing power to buy what the economy can produce and has adopted coping mechanisms that have a negative impact on their quality of life; how the rich use their increasing wealth to speculate; and how an angrier politics emerges as more Americans conclude that the game is rigged for the benefit of a few. Unless this trend is reversed, the Great Recession will only be repeated.
Reich’s assessment of what must be done to reverse course and ensure that prosperity is widely shared represents the path to a necessary and long-overdue transformation. Aftershock is a practical, humane, and much-needed blueprint for both restoring America’s economy and rebuilding our society.
From the Hardcover edition.
By the author of the modern classic The Black Swan, this collection of aphorisms and meditations expresses his major ideas in ways you least expect.
The Bed of Procrustes takes its title from Greek mythology: the story of a man who made his visitors fit his bed to perfection by either stretching them or cutting their limbs. It represents Taleb’s view of modern civilization’s hubristic side effects—modifying humans to satisfy technology, blaming reality for not fitting economic models, inventing diseases to sell drugs, defining intelligence as what can be tested in a classroom, and convincing people that employment is not slavery.
Playful and irreverent, these aphorisms will surprise you by exposing self-delusions you have been living with but never recognized.
With a rare combination of pointed wit and potent wisdom, Taleb plows through human illusions, contrasting the classical values of courage, elegance, and erudition against the modern diseases of nerdiness, philistinism, and phoniness.
“Taleb’s crystalline nuggets of thought stand alone like esoteric poems.”—Financial Times
From the Trade Paperback edition.
In short, either we embrace radical change ourselves or radical changes will be visited upon our physical world. The status quo is no longer an option.
In This Changes Everything Naomi Klein argues that climate change isn’t just another issue to be neatly filed between taxes and health care. It’s an alarm that calls us to fix an economic system that is already failing us in many ways. Klein meticulously builds the case for how massively reducing our greenhouse emissions is our best chance to simultaneously reduce gaping inequalities, re-imagine our broken democracies, and rebuild our gutted local economies. She exposes the ideological desperation of the climate-change deniers, the messianic delusions of the would-be geoengineers, and the tragic defeatism of too many mainstream green initiatives. And she demonstrates precisely why the market has not—and cannot—fix the climate crisis but will instead make things worse, with ever more extreme and ecologically damaging extraction methods, accompanied by rampant disaster capitalism.
Klein argues that the changes to our relationship with nature and one another that are required to respond to the climate crisis humanely should not be viewed as grim penance, but rather as a kind of gift—a catalyst to transform broken economic and cultural priorities and to heal long-festering historical wounds. And she documents the inspiring movements that have already begun this process: communities that are not just refusing to be sites of further fossil fuel extraction but are building the next, regeneration-based economies right now.
Can we pull off these changes in time? Nothing is certain. Nothing except that climate change changes everything. And for a very brief time, the nature of that change is still up to us.
New Revelations: Featuring 15 explosive new chapters, this expanded edition of Perkins's classic bestseller brings the story of economic hit men (EHMs) up to date and, chillingly, home to the US. Over 40 percent of the book is new, including chapters identifying today's EHMs and a detailed chronology extensively documenting EHM activity since the first edition was published in 2004.
Former economic hit man John Perkins shares new details about the ways he and others cheated countries around the globe out of trillions of dollars. Then he reveals how the deadly EHM cancer he helped create has spread far more widely and deeply than ever in the US and everywhere else—to become the dominant system of business, government, and society today. Finally, he gives an insider view of what we each can do to change it.
Economic hit men are the shock troops of what Perkins calls the corporatocracy, a vast network of corporations, banks, colluding governments, and the rich and powerful people tied to them. If the EHMs can't maintain the corrupt status quo through nonviolent coercion, the jackal assassins swoop in. The heart of this book is a completely new section, over 100 pages long, that exposes the fact that all the EHM and jackal tools—false economics, false promises, threats, bribes, extortion, debt, deception, coups, assassinations, unbridled military power—are used around the world today exponentially more than during the era Perkins exposed over a decade ago.
The material in this new section ranges from the Seychelles, Honduras, Ecuador, and Libya to Turkey, Western Europe, Vietnam, China, and, in perhaps the most unexpected and sinister development, the United States, where the new EHMs—bankers, lobbyists, corporate executives, and others—“con governments and the public into submitting to policies that make the rich richer and the poor poorer.”
But as dark as the story gets, this reformed EHM also provides hope. Perkins offers a detailed list of specific actions each of us can take to transform what he calls a failing Death Economy into a Life Economy that provides sustainable abundance for all.
The Rise and Fall of Bear Stearns is Alan Greenberg’s remarkable story of ascending to the top of one of Wall Street’s venerable powerhouse financial institutions. After joining Bear Stearns in 1949, Greenberg rose to become formally head of the firm in 1978. No one knows the history of Bear Stearns as he does; no one participated in more key decisions, right into the company’s final days. Greenberg offers an honest, clear-eyed assessment of how the collapse of the company surprised him and other top executives, and he explains who he thinks was responsible. This is a candid, fascinating account of a storied career and its stunning conclusion.
"Whoever coined the adage about hindsight being twenty-twenty didn’t make any allowance for astigmatism or myopia. Whose hindsight? And from what distance? A picture clarifies or blurs with the passage of time, and whatever image emanates at a given instant is colored by the biases of the observer. Knowing that my perceptions of the fall of Bear Stearns are inevitably somewhat subjective, I’ve tried to make sense of exactly what happened when and how this or that development along the way contributed to the ultimate outcome. I’ve wanted to get a fix on the moment when we ceased controlling our own destiny—not out of intramural curiosity but because that loss of control resonated and replicated globally. For those of us who across decades gave so much of ourselves to Bear Stearns, what took place during a single week in March 2008 was a watershed in our lives. With sufficient time and distance, as the context expanded, we could recognize it as the signal event of an enormous disruption that the world will be struggling to recover from for years to come."
—from THE RISE AND FALL OF BEAR STEARNS
A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an explanation that makes it appear less random, and more predictable, than it was. The astonishing success of Google was a black swan; so was 9/11. For Nassim Nicholas Taleb, black swans underlie almost everything about our world, from the rise of religions to events in our own personal lives.
Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Taleb, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know. We are, therefore, unable to truly estimate opportunities, too vulnerable to the impulse to simplify, narrate, and categorize, and not open enough to rewarding those who can imagine the “impossible.”
For years, Taleb has studied how we fool ourselves into thinking we know more than we actually do. We restrict our thinking to the irrelevant and inconsequential, while large events continue to surprise us and shape our world. In this revelatory book, Taleb explains everything we know about what we don’t know, and this second edition features a new philosophical and empirical essay, “On Robustness and Fragility,” which offers tools to navigate and exploit a Black Swan world.
Elegant, startling, and universal in its applications, The Black Swan will change the way you look at the world. Taleb is a vastly entertaining writer, with wit, irreverence, and unusual stories to tell. He has a polymathic command of subjects ranging from cognitive science to business to probability theory. The Black Swan is a landmark book—itself a black swan.
Praise for Nassim Nicholas Taleb
“The most prophetic voice of all.”—GQ
Praise for The Black Swan
“[A book] that altered modern thinking.”—The Times (London)
“A masterpiece.”—Chris Anderson, editor in chief of Wired, author of The Long Tail
“Idiosyncratically brilliant.”—Niall Ferguson, Los Angeles Times
“The Black Swan changed my view of how the world works.”—Daniel Kahneman, Nobel laureate
“[Taleb writes] in a style that owes as much to Stephen Colbert as it does to Michel de Montaigne. . . . We eagerly romp with him through the follies of confirmation bias [and] narrative fallacy.”—The Wall Street Journal
“Hugely enjoyable—compelling . . . easy to dip into.”—Financial Times
“Engaging . . . The Black Swan has appealing cheek and admirable ambition.”—The New York Times Book Review
From the Hardcover edition.
Updated, with additional analysis of the government’s recent attempt to reform the banking industry, this is a timely and expert account of our troubled political economy.
Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
Revealing how we arrived at the current crisis, Perry Mehrling traces the evolution of ideas and institutions in the American banking system since the establishment of the Federal Reserve in 1913. He explains how the Fed took classic central banking wisdom from Britain and Europe and adapted it to America's unique and considerably more volatile financial conditions. Mehrling demonstrates how the Fed increasingly found itself serving as the dealer of last resort to ensure the liquidity of securities markets--most dramatically amid the recent financial crisis. Now, as fallout from the crisis forces the Fed to adapt in unprecedented ways, new principles are needed to guide it. In The New Lombard Street, Mehrling persuasively argues for a return to the classic central bankers' "money view," which looks to the money market to assess risk and restore faith in our financial system.
John Donahue and Richard Zeckhauser show how the public sector can harness private expertise to bolster productivity, capture information, and augment resources. The authors explain how private engagement in public missions--rightly structured and skillfully managed--is not so much an alternative to government as the way smart government ought to operate. The key is to carefully and strategically grant discretion to private entities, whether for-profit or nonprofit, in ways that simultaneously motivate and empower them to create public value. Drawing on a host of real-world examples-including charter schools, job training, and the resurrection of New York's Central Park--they show how, when, and why collaboration works, and also under what circumstances it doesn't.
Collaborative Governance reveals how the collaborative approach can be used to tap the resourcefulness and entrepreneurship of the private sector, and improvise fresh, flexible solutions to today's most pressing public challenges.
On March 14, 2012, more than three million people read Greg Smith's bombshell Op-Ed in the New York Times titled "Why I Am Leaving Goldman Sachs." The column immediately went viral, became a worldwide trending topic on Twitter, and drew passionate responses from former Fed chairman Paul Volcker, legendary General Electric CEO Jack Welch, and New York City mayor Mike Bloomberg. Mostly, though, it hit a nerve among the general public who question the role of Wall Street in society -- and the callous "take-the-money-and-run" mentality that brought the world economy to its knees a few short years ago. Smith now picks up where his Op-Ed left off.
His story begins in the summer of 2000, when an idealistic 21-year-old arrives as an intern at Goldman Sachs and learns about the firm's Business Principle #1: Our clients' interests always come first. This remains Smith's mantra as he rises from intern to analyst to sales trader, with clients controlling assets of more than a trillion dollars.
From the shenanigans of his summer internship during the technology bubble to Las Vegas hot tubs and the excesses of the real estate boom; from the career lifeline he received from an NFL Hall of Famer during the bear market to the day Warren Buffett came to save Goldman Sachs from extinction-Smith will take the reader on his personal journey through the firm, and bring us inside the world's most powerful bank.
Smith describes in page-turning detail how the most storied investment bank on Wall Street went from taking iconic companies like Ford, Sears, and Microsoft public to becoming a "vampire squid" that referred to its clients as "muppets" and paid the government a record half-billion dollars to settle SEC charges. He shows the evolution of Wall Street into an industry riddled with conflicts of interest and a profit-at-all-costs mentality: a perfectly rigged game at the expense of the economy and the society at large.
After conversations with nine Goldman Sachs partners over a twelve-month period proved fruitless, Smith came to believe that the only way the system would ever change was for an insider to finally speak out publicly. He walked away from his career and took matters into his own hands. This is his story.
--Provides a comprehensive view of financing methods: public, private, and a combination of both sectors.
--Includes an up-to-date evaluation of traditional and new financing techniques, and the limitations and opportunities of each.
--Addresses current economic issues, including a chapter on banking reform.
--Includes completely revised sections on private and entrepreneurial finance as well as public finance.
Author Richard L. Oliver traces the history of consumer satisfaction from its earliest roots, and brings together the very latest thinking on the consequences of satisfying (or not satisfying) a firm's customers. He describes today's best practices in business, and broadens the determinants of satisfaction to include needs, quality, fairness, and regret (what might have been).
The chapters in atisfaction culminate in Oliver's detailed model of consumption processing and his satisfaction measurment scale. The text concludes with a section on the long-term effects of satisfaction, and why an understanding of satisfaction psychology is vitally important to top management.
The trail of Wells Fargo runs through nearly every imaginable landscape and icon of frontier folklore: the California Gold Rush, the Pony Express, the transcontinental railroad, the Civil and Indian Wars. From the Great Plains to the Rockies to the Pacific Ocean, the company's operations embraced almost all social, cultural, and economic activities west of the Mississippi, following one of the greatest migrations in American history.
Fortune seekers arriving in California after the discovery of gold in 1849 couldn't bring the necessities of home with them. So Wells Fargo express offices began providing basic services such as the exchange of gold dust for coin, short-term deposits and loans, and reliable delivery and receipt of letters, money, and goods to and from distant places. As its reputation for speed and dependability grew, the sight of a red-and-yellow Wells Fargo stagecoach racing across the prairie came to symbolize not only safe passage but faith in a nation's progress. In fact, for a time Wells Fargo was the most powerful and widespread institution in the American West, even surpassing the presence of the federal government.
Stagecoach is a fascinating and rare combination of Western and business history. Along with its colorful association with the frontier -- Wyatt Earp, Black Bart, Buffalo Bill -- readers will discover that swiftness, security, and connectivity have been constants in Wells Fargo's history, and that these themes remain just as important today, 150 years later.
In sharp, clinical detail, Darrell Duffie walks readers step-by-step through the mechanics of large-bank failures. He identifies where the cracks first appear when a dealer bank is weakened by severe trading losses, and demonstrates how the bank's relationships with its customers and business partners abruptly change when its solvency is threatened. As others seek to reduce their exposure to the dealer bank, the bank is forced to signal its strength by using up its slim stock of remaining liquid capital. Duffie shows how the key mechanisms in a dealer bank's collapse--such as Lehman Brothers' failure in 2008--derive from special institutional frameworks and regulations that influence the flight of short-term secured creditors, hedge-fund clients, derivatives counterparties, and most devastatingly, the loss of clearing and settlement services.
How Big Banks Fail and What to Do about It reveals why today's regulatory and institutional frameworks for mitigating large-bank failures don't address the special risks to our financial system that are posed by dealer banks, and outlines the improvements in regulations and market institutions that are needed to address these systemic risks.
For undergraduates and MBA students, this book offers the perfect preparation for the demanding and rigorous investment banking recruitment process. It features an overview of investment banking and careers in the field, followed by chapters on the core accounting and finance skills that make up the necessary framework for success as a junior investment banker. The book then moves on to address the kind of specific technical interview and recruiting questions that students will encounter in the job search process, making this the ideal resource for anyone who wants to enter the field.The ideal test prep resource for undergraduates and MBA students trying to break into investment banking Based on author Andrew Gutmann's proprietary 24 to 30-hour course Features powerful learning tools, including sample interview questions and answers and online resources
For anyone who wants to break into investment banking, How to Be an Investment Banker is the perfect career-making guide.
Jeremy Hope says it’s time to redefine the role of CFOs in today’s organizations, liberating them from ineffective number-crunching responsibilities and enabling them to focus on helping managers improve performance. Grounded in extensive research, Reinventing the CFO outlines seven critical roles—from streamlining redundant processes to regulating risk to identifying a few key measures—that CFOs must take on in order to successfully transform the finance operation.
Challenging many of the finance field’s accepted practices and systems, this bold book revolutionizes the role of financial managers and frees them to make smart, ethical, strategic decisions that add real value to the firm.
In Life Inc, award-winning writer Douglas Rushkoff traces how corporations went from being convenient legal fictions to being the dominant fact of contemporary life. The resulting ideology, corporatism, has infiltrated all aspects of civics, commerce, and culture—from the founding of the first chartered monopoly to the branding of the self, from the invention of central currency to the privatization of banking, from the Victorian Great Exhibition to the solipsism of Facebook. Life Inc explains why we see our homes as investments rather than places to live, our 401(k) plans as the ultimate measure of success, and the Internet as just another place to do business. Most important, Rushkoff illuminates both how we’ve become disconnected from our world and how we can reconnect to our towns, to the value we can create, and, mostly, to one another. As the speculative economy collapses under its own weight, Life Inc shows us how to build a real and human-scaled society to take its place.
First published by the University of Chicago Press on September 18, 1944, The Road to Serfdom garnered immediate, widespread attention. The first printing of 2,000 copies was exhausted instantly, and within six months more than 30,000 books were sold. In April 1945, Reader’s Digest published a condensed version of the book, and soon thereafter the Book-of-the-Month Club distributed this edition to more than 600,000 readers. A perennial best seller, the book has sold 400,000 copies in the United States alone and has been translated into more than twenty languages, along the way becoming one of the most important and influential books of the century.
With this new edition, The Road to Serfdom takes its place in the series The Collected Works of F. A. Hayek. The volume includes a foreword by series editor and leading Hayek scholar Bruce Caldwell explaining the book's origins and publishing history and assessing common misinterpretations of Hayek's thought. Caldwell has also standardized and corrected Hayek's references and added helpful new explanatory notes. Supplemented with an appendix of related materials ranging from prepublication reports on the initial manuscript to forewords to earlier editions by John Chamberlain, Milton Friedman, and Hayek himself, this new edition of The Road to Serfdom will be the definitive version of Hayek's enduring masterwork.
David E. Vance, C.P.A., is an instructor in the M.B.A. program at Rutgers University School of Business and director of executive development for the Rohrer Center for Management and Entrepreneurship.