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Panic: The Betrayal of Capitalism by Wall Street and Washington
Explores the origins and history of the 2008 economic crash with wit and wisdom, explaining how markets actually work, revealing why market booms and busts have become so common in recent years and outlining what can be done about it. $50,000 ad/promo.
263 pages, Hardcover
First published March 1, 2010
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Displaying 1 - 4 of 4 reviews
May 12, 2010
This book review is for my own reference. Please feel free to skip it.
The efficient market hypothesis weakens investors' responsibility and ability to make judgments. Innovations by definition are shocks to the equilibrium entailed by an efficient market. In an efficient market, nobody can generate excess profits because the market and all its participants are omniscient. The efficient market hypothesis increases the likelihood of panic by encouraging participants to adopt the same mechanical approach to investing.
Under the New Deal, the FDIC started to guarantee bank deposits and force chartered banks to come under strict regulations. Investment banks, by channeling investors' funds to the home owners without intermediaries, essentially circumvented the protection provided by the New Deal.
Keywords: strong ownership, crony capitalism, innovation, judgment.
The efficient market hypothesis weakens investors' responsibility and ability to make judgments. Innovations by definition are shocks to the equilibrium entailed by an efficient market. In an efficient market, nobody can generate excess profits because the market and all its participants are omniscient. The efficient market hypothesis increases the likelihood of panic by encouraging participants to adopt the same mechanical approach to investing.
Under the New Deal, the FDIC started to guarantee bank deposits and force chartered banks to come under strict regulations. Investment banks, by channeling investors' funds to the home owners without intermediaries, essentially circumvented the protection provided by the New Deal.
Keywords: strong ownership, crony capitalism, innovation, judgment.
July 12, 2011
The first part of the book is only moderately interesting,
but the second half has a lot of original thinking that is lacking in the dozen or more books I've read about the 2008 crash.
Best of the breed I'd say.
but the second half has a lot of original thinking that is lacking in the dozen or more books I've read about the 2008 crash.
Best of the breed I'd say.
October 9, 2011
An absolute must read for understanding the mortgage crisis, what happened and why. A very thoughtful book on how the financial markets work, on capitalism versus socialism and on government regulation.
May 16, 2011
A rant by a hedge fund manager.
Displaying 1 - 4 of 4 reviews