Book review: Boombustology

For those who have read the Aleph for years my Blog, this book will provide little that is new.  However, you receive a set of arguments in an integrated package of slim.

I liked this book.  The author took a broad view of bubbles and developed five lenses through which to analyze:

MicroeconomicsMacroeconomicsPsychologyPoliticsBiological ratios (contagion)

This is the increase in short-term debt, the alignment of long-term incentives, crowd behavior, imitation, agreed with booms, shows the finger during busts, etc.

This book encapsulates the ideas of Keynes, Minsky, Austrian economists, Soros (reflexivity) and others.  The author was very willing to interact with the view of those who may not fully agree with him, and displays all the areas where they agree.

And the author of five lenses tests in five bubbles:

The great bubbleThe Tulip DepressionJapan late 80sThe Asian crisis in the housing crisis 1997The MAS 2006-?

Not surprisingly the crises chosen supports the theory.  It would be interesting to see what the author would like to say about other bubbles, such as the South Sea bubble, the Tech bubble, etc.

And so the author sums up the case, and I think it is not good. But then takes a step further, and effectively saying, "well, there is an obvious bubble to say today?"  And so our China highlights.  Debts, handling, malinvestment, evil motives, etc.  You can read for yourself and draw your own conclusions.

My main verdict for this book is that it provides a solid basis for the evaluation of the bubble.  Can I place the back "Manias, panics and crashes" and "Devil take the Hindmost," but not by much.  Author: great work.

Sophistry

I disagree with the idea that the booms and busts are a phenomenon of the capitalist.  -And-command economies have booms and busts — the great leap forward, it was an explosion followed by a huge bust.  An attempt to plant cotton in the Soviet Union was short-lived, leads to a reduction of yields and the destruction of the ecology of the sea of Aral Sea.  There are more examples of this. at least, capitalism blossoming yields some decent rewards.

Who will benefit from this Book:

Anyone who wants a better understanding of the boom-bust cycle will benefit from this book.  The author has nailed it for me.  This book will help you properly skeptical next unsustainable boom and minimize your exposure to bust once.

If you want to do, you can buy it here: Boombustology: festive period financial bubbles before they burst.

Full disclosure: I asked the Publisher for the book, and sent them to me.

If you enter Amazon through my site, and you can buy anything, I get a small Commission.  This is the main source of income for my blog.  I prefer a "Tip jar" because I want to get anything you want, instead of simply gives me a tip.  Book reviews take time, particularly in reading, which most reviewers, not book fully, and usually do. (If not, mention that I scanned the book.  Also, never use the data we will send the PR flacks.)

Most people buy on Amazon does not enter through a Web page that contains references.  So Amazon creates an extra 1-3% on the prices to all buyers to compensate for supplies given to minority derived through referring sites.  If you can buy on Amazon directly or enter through my site, don't change your values.

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Book review: all the Devils are here

Have you ever seen a complex array of dominoes standing, waiting for the first Domino to hit up, starting a chain reaction will occur where amazing tricks?  I remember seeing things like that many times on "the tonight show with Johnny Carson" back when I was a kid.

When the first dominoes hit during the entire event, do not have time to complete — perhaps in a few minutes at most.  But what do I need to set the dominoes?  Take hours of time, perhaps even a whole day or more.  Often those permission setting tiles a few here and there, so that an accident would only spoil a limited part of what is established.

These standing dominoes is an unstable equilibrium.  This is particularly so in the end, when the tiles are added to remove security from having an accident.

Most books about the focus of the economic crisis in the dominoes falling — is astonishing and upset to watch the disaster unfold, as finally revealed the influence of the system to be viable.

This book is different, that focuses on how the dominoes were created.  How did create the leverage?  How many safety ignored?

The beauty of this book is that we are behind the scenes and describes how they created the conditions that led to a huge new bad debt.  I was small and clumsy child.  My friends would tell me during sports, "there are mistakes, but the error was so great that it required skill."

The same applied to this crisis.  There were many people who have carried their own private advantage, using new financial instruments that were fairly harmless in themselves, but lethal as a group.  So, what were the major economic innovations that enabled the crisis?

Creation of Fannie and Freddie, which led to an over-mortgage Securitization issuance., particularly mortgage loans.  This led to a separation between authors and certificateholders. (And servicers, although the book doesn't go into much servicers.)Having parts covering debt, or GSEs, Guaranty Insurers, the Government or credit default swaps [CDS] Loosening regulations on commercial banks, investment banks and S&Ls. Regulatory arbitrage depositary institutions. Loose monetary policy by the Federal Reserve, together with a disdain for regulating credit.  Seen in Mexico and LTCM as successes, and felt that there was any crisis that could not be resolved with additional liquidity at the Poorly rating agency models., and competition among the rating agencies for obtaining business. regulators required the use of rating agencies for the broad capital modeling.informed, bad assumption that real estate prices can only move upwards. creating value-at-risk, a risk management concept has limited usefulness for the true crisis management creating CDOs. that did not care about much more than performance. the development of synthetic CDOs, which allowed the securitization to apply corporate bonds, MBS and ABS trusts. owns the creation of structures, subprime loan, where he was receiving care were performance. create piggyback loans, so that people could put no money for a House.

There are no heroes in this book, apart from the tragic heroes who warned and was kicked aside the hubris of the era.  Goldman Sachs comes out better than most, because they saw the crisis coming, and to protect themselves from investment banks mot.

I learned a lot reading this book, and I've read a dozen books.  I can't find many other books.  In this book, the authors interviewed hundreds of people who were integral to the crisis, and to read a wide variety of sources previously wrote about the crisis.

I found the book is a riveting read and I read cover to cover.  Could not change the scanning mode. was that well written.

This is the best book on the crisis in my opinion, because it gets you behind the scenes.  You'll learn more from this book than any other on the crisis.

Sophistry

Do not take the trouble to rating agency.  There is pressure to get things right in the cycle, and you receive the right to a timely basis.  These two goals conflict with each other, and stresses that the conflict would have enhanced the book.

Who will benefit from this Book:

Anyone willing to read a longish book, could benefit from this book.  Far is the best book on the crisis.

If you want to do, you can buy it here: all the Devils are here: the hidden history of the economic crisis.

Full disclosure: this book was sent to me, because I asked for this.

If you enter Amazon through my site, and you can buy anything, I get a small Commission.  This is the main source of income for my blog.  I prefer a "Tip jar" because I want to get anything you want, instead of simply gives me a tip.  Book reviews take time, particularly in reading, which most reviewers, not book fully, and usually do. (If not, mention that I scanned the book.  Also, never use the data we will send the PR flacks.)

Most people buy on Amazon does not enter through a Web page that contains references.  So Amazon creates an extra 1-3% on the prices to all buyers to compensate for supplies given to minority derived through referring sites.  If you can buy on Amazon directly or enter through my site, don't change your values.

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Book review: essential elements of the Act of Dodd-Frank

Before you start tonight, I just want to say that a day goes, if I can find a good theme, I prepare for it. If you don't plan to do a review of the book. As is, I have 15 books I've read and reviewed. The majority of them are poor. It is difficult to make this book a bad review, but rather would make a lot of them.

=-=-=-=-=-==-=-=-=-=-=-=-=-=-

My review of this book was shaped by the coverage of my industry.  I am Director of investments, plus a small amount.  I learned much more from other sources about what I need to do to comply with the Dodd-Frank from this book was.  If only I had this book to help guide me in my work, I will never sink.

Now, as I read through the book struck me as a summary of the law, were without a lot of insight.

The structure of the book is this:

Importing the ActExplain history and goalsGo through the main sections (major divisions) of the law, and provide brief explanations of the main points. Explain how different institutions are at a high level, then talk about how the various studies required by the Act will beand how regulatory rules will be created. How does it affect all existing organizations, as well as new services are created by the impact of the Act is universally. What (not very) how does it affect different economic professionsHow interacts with the SOX and Basel (not much)

I found the book to be weak, because of what I know about my industry, as well as other financial industries.  I read it as someone went through the law and what is clips.

Sophistry

I have no quibbles, I only object.  This book was made very quickly, and with very little thought.

Who will benefit from this Book:

Better you should read the Act. It is bad, but not evil, as is Washington.  The operation is great, so if you are looking for an easy introduction to this book could be useful, but you could probably clip the highlights of the transaction yourself.  It is only a question of the value of your time.

If you want to do, you can buy it here: key elements of the Act of Dodd-Frank (series basics).

Full disclosure: asked me if I would like to get this book, and I said yes.  What a disappointment.

If you enter Amazon through my site, and you can buy anything, I get a small Commission.  This is the main source of income for my blog.  I prefer a "Tip jar" because I want to get anything you want, instead of simply gives me a tip.  Book reviews take time, particularly in reading, which most reviewers, not book fully, and usually do. (If not, mention that I scanned the book.  Also, never use the data we will send the PR flacks.)

Most people buy on Amazon does not enter through a Web page that contains references.  So Amazon creates an extra 1-3% on the prices to all buyers to compensate for supplies given to minority derived through referring sites.  If you can buy on Amazon directly or enter through my site, don't change your values.

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Book review: Fatal risk

When I came to work in mutual provident, I have a friend who reported me.  Roy was a real character.  He had rules for life, and all of this made sense to some extent.  When he claimed on why businesses and how we have done in the authoring section, said, "we are the good guys.  We are to save the world for 0.25% assets plus postage and handling. "

I want to work with the good guys. This is my style, if I can achieve.  Many are clearly out for personal enrichment, leaving aside the failure/do good to others.

Roddy Boyd is a good.  If you read the stuff before in the newspapers/magazines in which he wrote, would benefit from the book of AIG.

This book has some real knowledge.  Focuses on the years in which AIG stopped a single insurer, and became a player on the financial markets.

That being said, contains new data on m. r. Greenberg, particularly with regard to the years of war.  I found it very insightful, and helped to understand why it was that it was not the boss. (I work at AIG 1989-1992).  It was a tough man both war and business.

Boyd interview as many as we talk with him and excluding material which should not be confirmed by both parties.  I thought that was a moral way to deal with information which has not yet publicly known.

The driving force behind the push to AIG financial services was the need for the income uncorrelated with the cycle insurance P and c.  That also resulted in derivatives, securities trading, aircraft leasing business and expansion of domestic life, with the purchase of SunAmerica and General American (two mistakes through overpayment, in my opinion, and I know that this undertaking).

This extension took toll on AIG and as this could not be deployed useful organic more 15%, began to borrow money, both explicitly and implicitly, in order to lever to fall ROA (return on assets) to 15% ROE (return on equity).

Greenberg oversaw the expansion in financial services, although not the shameless risk taking after he was kicked.  Also, the increasing debt implicit — most of which occurred on the clock.  But those who followed the case were equals.  That would not be able to manage what was unmanagable by lesser mortals.  Martin Sullivan should have broken the company one day. This was the failure of.  But anyone could manage Greenberg monstrosity.  If it had remained there, I suspect that the company would have blown up in 2010-2015, which is a lot less.  I think it was a mercy that he got kicked out.

When everything blew apart, nobody could catch the entire picture.  Greenberg had gone.  AIG was undermanaged.  Nobody knew the whole story, and all the associations for subprime lending: hinging direct lending through its consumer finance arm, investments in insurance companies, insurance subsidiaries through guarantees, mortgages, subprime collateralized by securities lending to companies with domestic lifeand guarantees to AIG financial products.

The diversification effort is ultimately an exercise in concentration.  Nothing grows on the sky.  Large companies tend to rot from the inside, and this was the case for the Greenberg, AIG or not.  I believe neither in Greenberg got game profits Wall Street, and eventually became too large for him.  Of course, was too big for his successors.

This was a great book.  I loved every minute reading this.  I could not put it.  Roddy is one of the "good guys" and for what is right.  But this is fair. don't take someone to work unless undeniable proof.  Therefore those who are suspect, but have no ironclad case against them stands, which is as it should be.

One more Note, this book had a really good balance in how we leave the main story to explain a concept, as well as the wider business world.  It is the main focus should be given to AIG and explains how it fit into the broader picture.

Sophistry

The book is not yet available.  I read an issue beforehand, and there were some minor errors that I expect that will eradicate when it goes to print.

Who will benefit from this Book:

Anyone who wants to learn more about AIG world benefit.  This is the best book yet AIG crisis.  Beyond this, readers who want to understand the complexity of the financial system, and how this led to the crisis will benefit, as AIG was a microcosm of the greater panic.

If you want to do, you can buy it here: fatal danger: A cautionary tale of AIG corporate suicide.

Full disclosure: this book was sent to me by the author, spam.

If you enter Amazon through my site, and you can buy anything, I get a small Commission.  This is the main source of income for my blog.  I prefer a "Tip jar" because I want to get anything you want, instead of simply gives me a tip.  Book reviews take time, particularly in reading, which most reviewers, not book fully, and usually do. (If not, mention that I scanned the book.  Also, never use the data we will send the PR flacks.)

Most people buy on Amazon does not enter through a Web page that contains references.  So Amazon creates an extra 1-3% on the prices to all buyers to compensate for supplies given to minority derived through referring sites.  If you can buy on Amazon directly or enter through my site, don't change your values.

Book reviews, security, structured products and derivatives ||

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Book review: the last of the rich Imperial

This is a great book for those who love the history of the economy, as I do.  Describes the fortunes of the clan Lehman, Jews, having emigrated from Germany in pre-war Montgomery, Alabama, and later New York City, and what they did as a commodity trading firm to venture capital and investment banking.

As a family business, lasted for three or four generations.  There was less than a generation as a private company outside of family control.  Stagnation, and must allow for liquidity which led to the need for a broader capital base, which led to the sale, American Express.

The Title comes from the life of Bobbie Lehman, who was the last family member to lead the company, which as a donor, had achieved such a position that is fear in the hearts of those who would speak, although he was a gentleman of the many concerns and a patron of the Arts in high degree.

History is Messy

How three immigrant brothers managed to create an a, especially with the original leader dying prematurely?  Hard work. situated in the correct position on the right times.  Their family structures held together quite well with increasing wealth, at least until the third generation.

Be realistic, and sometimes cut to their authorities.  There is some evidence that brother bought at least one slave.

Goods are traded in was hot demand.  He constructed a large enterprise.  That had a presence in both areas for agricultural commodities, and financial capital, the city of New York, was an ideal project to have information on both sides of the market supply and demand.

However, the messiness of history is what makes this an interesting history and says the author.

Sophistry

It is a really good book.  I think it is best to combined with a colossal failure of common sense: the inside story of the collapse of Lehman Brothers, because it says the end of the story better.  But the beginning of the story is rich, and had done a few alternative decisions, Lehman might not have failed.

Who will benefit from this Book:

I think most investors could benefit from the book, mainly because I believe that the economic history is valuable.  History does not repeat, but it rhymes lyrics, and this gives us more than a few new poems to examine.

If you want to do, you can buy it here: the last of the rich Imperial: Lehman Brothers, 1844-2008.

Full disclosure: this book was sent to me and I do not think I asked for this.  I am, but they sent.

If you enter Amazon through my site, and you can buy anything, I get a small Commission.  This is the main source of income for my blog.  I prefer a "Tip jar" because I want to get anything you want, instead of simply gives me a tip.  Book reviews take time, particularly in reading, which most reviewers, not book fully, and usually do. (If not, mention that I scanned the book.  Also, never use the data we will send the PR flacks.)

Most people buy on Amazon does not enter through a Web page that contains references.  So Amazon creates an extra 1-3% on the prices to all buyers to compensate for supplies given to minority derived through referring sites.  If you can buy on Amazon directly or enter through my site, don't change your values.

Book reviews, macroeconomics, derivatives and structured products ||

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