Reviews (15)

The best math book for economists!
The book does not merely provide a sequence of theorems, but helps to develops mathematical intuition which is really critical for economists. I don't have any hesitation to strongly recommend this book to anyone who wants to learn the essential mathematics for economics. One of the best economics books I've ever read!

The best mathematics for economists book ever written
The text is a phenomenon. A book written not only for economists, but also for applied mathemeticians, finance professionals, and others interested in applying mathematics to economics and business problems. It provides solid math fundamentals to students of economics and finance and can easily rival any advanced calculus, linear algebra, or optimization text. Unlike lecture notes, its approach is complete and balanced. It's a text with character, flow, and content. I've read it several times.

Mathematics for Economists
Where is the Comparitve Statics section? Dynamic Analysis? Difference equations? Calculus of Variations? Optimal Control? Etc.

Excellent but incomplete
Excellent description on mathematics needed in economic analysis especially in advanced level. But it do not include some topics such as dynamic optimization, integraion.

The "must" item for all Econ. students.
I recommend this book to all Econ. students. It helps me apply the theories I have learned, also, it enhances my ability on problem solving. Straight forward explainations and practical exercises. ... Read more

Book Description

In this revolutionary bestseller, Harvard professor Clayton M. Christensen says outstanding companies can do everything right and still lose their market leadership, or worse, disappear completely. And he not only proves what he says, he tells others how to avoid a similar fate.

Focusing on "disruptive technology" of the Honda Supercub, Intel's 8088 processor, and the hydraulic excavator, Christensen shows why most companies miss "the next great wave." Whether in electronics or retailing, a successful company with established products will get pushed aside unless managers know when to abandon traditional business practices. Using the lessons of successes and failures from leading companies, The Innovator's Dilemma presents a set of rules for capitalizing on the phenomenon of disruptive innovation.

Reviews (125)

Great Book About Business Strategies, Must Read for Managers
Comment: This review is done as a class project for the San Jose State University MBA e-commerce course by Ji Luo.

Dr. Christensen's book offered me a fresh perspective into looking at how large established business failed. As the author explained it, the standard process that governs sound management could be the same one that destroys the company. I found his use of graphics and quantities data sufficient as well as very useful in understand concepts such as the S-curve and the value networks. The detailed analysis shows that the author has done quite a bit of research into the topic and that makes the data more credible to me. His writing style is very easy to understand and organized. First few chapters go into how disruptive technology can destroy a company if not harnessed. His later chapters list guidelines on how to avoid the pitfalls. These guidelines are followed thoroughly by many case studies and quotes from industry leaders. While company's policies shouldn't be based on a few guidelines and the situations in a person's particular industry may find the guidelines hard to follow, the author's particular views are irrefutable and should at least be considered by the managers. It's really exciting to see him link the same principles to so many varying industries from high tech to low tech. The overarching principle of sustaining technology and disruptive technology and how a company should embrace it could be applied to any large established industry.

People who are interested in the business world should read this book and should especially be read by top managers in large corporation because many of them are ultimately responsible for success or failure of implementing disruptive technology. However, this is not a perfect book. I am a bit skeptical as to whether these rules apply to medium sized companies or companies with low margins. Therefore, my opinion is that the guidelines listed here really only applies to large organization with a lot of resources to divide. Also, The author sometimes repeat his points more than he should. He tends to concentrate so much on the hard disk drive industry that he left less room to get into deeper analysis into other industries.

Overall, I think this is a great read for anyone interested in business and wondered about how large companies such as Montgomery Wards could go belly-up or why Digital Corporation disappeared from our vocabulary.

A "must own" for managers and business executives
This is the best book on strategy I have ever read (and I've read a few in my time). In his book, "The Innovator's Dilemma", Clayton M. Christensen, business professor at Harvard, explains why established firms fail, more often than none, when confronted with disruptive technologies.

Disruptive technology is different from radical innovation. Such technology initially proposes attributes that are not valued by current, mainstream customers. The technology is initially attractive to a small market segment -- making it unattractive for larger firms. Therefore lies the innovator's dillema: how to allocate resources to developing a technology that will target a smaller market and at lower margins.

Thoughout his book, Mr. Christensen develops a framework for managers and executives (also valid and valuable for consultants and analysts) to be able to resolve this dillema.

If you are to read only one book on business this year, the Innovator's Dillema should be it.

The reviewer is a certified management consultant and earned his MBA from the Schulich School of Business at York University and completed the Wharton School Multinational Marketing and Management Program. He is also a Professional Engineer and holds a Bachelor of Applied Science in Engineering from the University of Toronto.

Good introduction to a nice Theory
Not quite as easy to read as I would have liked. Christensen describes some very interesting & plausible theories, but is somewhat confined into employing the computer disk industry as the rapidly changing example which both demonstrates & proves his theories, and its not necessarily the most exciting case material. Other products only get a minor look-in.

What I did like is how he covers the footnotes at the end of each Chapter - so if they don't interest you, you can skip over them, but if they do interest you, then you don't have to struggle to the back of the book. I wish more authors & publishers would use that technique.

One quibble - given his Economics background - of course there are plenty of graphs, and 99% of them are straight lines - there are no time dependent variances in his world.

Read this before you read the Innovators Solution.

Driven by disks
Clay Christensen combines the science of empirical research with the art of organizational behavior in his best-selling "The Innovator's Dilemma." The book provides tangible advice on how to foster innovation within a corporate environment. His case studies draw from the successes and failures of American companies within numerous industries (disk drives, excavators, motorcycles, software). Christensen's strong points include a creative presentation of data, lucid writing and frank admission that the advice in his book is not a one-size-fits-all panacea for management challenges. But a heads-up to readers: perhaps 50% of the book centers on the disk-drive manufacturing industry. Although the lessons learned in hard drives are interesting, a more balanced approach would have been welcome. "The Innovators Dilemma" is a well written management how-to, in the same league as classics by Peters or Hammer. The book seems to be written for managers in large organizations, but entrepreneurs will probably find the material just as beneficial.

Fantastic book for anyone . . . especially business students
This was a fantastic book. I began reading it less than half way through the MBA program I am in and I was amazed at how many of the arguments others were making in class fell apart. This book helped me better analyze several aspects of many of my classes and I only wish I would have read it sooner.

I continued on and read the Innovator's Solution, and while I thought it was also a good book, I got much more out of the Innovator's Dilemma, though I still recommend both of them. ... Read more

Book Description

In writing this textbook, Mankiw has tried to put himself in the position of someone seeing economics for the first time. The author's conversational writing style is superb for presenting the politics and science of economic theories to tomorrow's decision-makers.Because Mankiw wrote it for the students, the book stands out among all other principles texts by intriguing students to apply an economic way of thinking in their daily lives.Receiving such a praise as "perhaps the best ever" textbook in economic principles, it's no wonder Mankiw's prize project has quickly become one of the most successful books ever to be published in the college marketplace. ... Read more

Reviews (3)

Does a good job for its objective
The book attempts to teach a reasonable mainstream core of macroeconomics and its basic models. The writing style is very good. For those who are looking for a broad discussion of policy issues, this may not be the book for them. However, the book is intended for first year college economics students and the need for them to understand a few consensus macroeconomic concepts and models so that they can apply those models and concepts to policy issues after they leave the course. A good example of putting the cart before the horse is the comment by a reviewer who thought the book had a liberal bent. Of course, we all now know that N. Gregory Mankiw is the head of President Bush's Council of Economic Advisers (not exactly a recommendation for becoming a card carrying liberal). And that's the danger of reviewing introductory economics textbooks on the basis of an illusory political intent. The books most often ought to be rated on their objective--presenting a few models and techiniques to the student who will most often not take another formal economics course. Don't dismiss the book because it isn't steeped in political pronouncements. Check it out for technical useability and its writing clarity. You might like it.

Don't look at those lib'ruls, children -- move along now
A nice intro, but as noted by another reviewer, very short shrift given to other schools of economic thought. A recommended reading list gives plenty of well-respected conservative writers, with Milton Friedman topping the list, but only Paul Krugman appears representing other thoughts, and he's singled out as a "liberal economist". I think there are somewhat more honest introductions to the subject.

Some good, some poor
Mankiw's book has a good organization -- for what it has. He spends a lot of time laying out some key fundamental topics, such as unemployment, GDP, CPI, DJIA, and so forth.

However, his book is entirely mum on the fact that there are different schools of thought, e.g., Keynesians, Classicals, Monetarists, Austrians, etc. A reader comes away thinking that all economists agree with Mankiw, and that simply is not true. Many other principles-level economics books have specific chapters devoted to these schools of thought.

In my Macro classes, I put Mankiw on "reserve" in the library and suggest that students read the 5 chapters dealing with "The Data of Macroeconomics" and "The Real Economy in the Long Run." However, I use other text books for the rest of the course, since they explain why economists disagree, give better information about actual public policy issues, and help a student understand, e.g., what the federal reserve is doing, or why some politicians like deficit spending and others dislike it, or whether the trade deficit is important or not.

For a reader who merely wants to understand the core issues mentioned above, Mankiw is a good book which I highly recommend. For a reader who wants to understand the nature of the public policy debates over these core issues, Mankiw is a horrible book which I suggest that you avoid like the plague. ... Read more

Reviews (2)

Good Graphs, but a bit thin on explanation.
I use this textbook in my Managerial Economics course.Personally, I think the graphs are very well done, but the material covered is somewhat more challenging than a typical intermediate-level textbook and requires an understanding of calculus.The verbal explanations could be better.Waldman makes somewhat ambitious efforts to cover advanced topics such in utility theory, the number of firms in monopolistic competition, and bundling.

Stay away from this book
To any instructor considering this book, don't use it.Currently, we are using this book in our Microtheory class.99% of the class hates the book and 75% of the class is barely passing.1.) The book is extremely dry, hard to understand, and requires reviewing the concepts at least 5+ times a week.2.) The author doesn't provide a thorough explanation for each concept.3.) The author uses calculus and algebra for majority of the concepts. ... Read more

Book Description

Notable changes occurring in the global marketplace since the publication of the first three editions of this book (1982, 1987, and 1993) have included e-commerce and widespread use of the Internet, growth of supply chain management, a continued explosion of computer and information technology worldwide, development of 24-hour markets with many organizations operating worldwide, and a continued corporate emphasis on quality and customer satisfaction. Trade agreements such as North America Free Trade Agreement (NAFTA), European Union, ASEAN and Mercosur have enabled corporations to implement regional, if not entirely global, logistics strategies. The fourth edition of Strategic Logistics Management has been significantly expanded to reflect these and the many other changes that have occurred, as well as to include state-of-the-art logistics information and technology. The basic tenets of the previous editions have been retained, but new material has been added to make the book more managerial, integrative, and "cutting edge." Strategic Logistics Management is still the only text that takes a marketing orientation and views the subject from a customer satisfaction perspective. While emphasizing the marketing aspects of logistics, it integrates all of the functional areas of the business as well as incorporating logistics into supply chain management. This book has been extensively revised and updated in the areas of technology, global coverage, and transportation. This book features brand new chapters on Supply Chain Management (Ch 2) and Measuring and Selling the Value of Logistics (Ch 17). ... Read more

Reviews (5)

Fourth Edition Selected for Graduate Course
I reviewed six different texts in preparing for a graduate level course in International Logistics at Baruch College before deciding on Stock and Lambert's Fourth Edition.This text combines currency, and breadth and depth in a way that is most relevant to the manner in which I wish to conduct the class.It provides a useful and usable reference to the students after the course is completed.Furthermore, the related web site has been very helpful in utilizing this text.I will complement the text for certain modules (i.e., E-Commerce, Culture Change, Logistics as a Career). One always needs, no matter who the author, to provide relevant current material from other sources.A big thanks goes to Stock and Lambert for this text.

Excellent Logistics Textbook
I have used this book as the primary text for my Supply Chain Management class at the College of New Jersey. My students are Junior and Senior undergraduate level students in the School of Business. The book provided excellent coverage of all major aspects of the logistics discipline.

I believe that the book would also be appropriate at the graduate school level. There are excellent case studies that can be expanded into worthwhile class discussions or projects.

The supplemental material for instructors is very helpful in preparing for lectures.

Useful concepts, but outdated in nature
I used this textbook for a recent college course.I was very disappointed because the book was published in 1992 when the computer was a novel concept "for the future of logistics management".If you can getby this "minor" point, there are other good points to be learnedin warehousing and inventory managment that are useful.In short: A goodreference book.

Only good as a reference book
This is not so much a text book for students, but rather a cook book for consultants. I found it boring to read and very superficial. But, as a reference guide in your professional carrier, it is probably quite useful.

This is definitely for the mathematically minded logistician
This book focusses on each and every aspect of Logistics managementstarting from generating an order for a product/commodity right through themanufacturing process, waehousing, inventory management, transportation andcustomer service. It goes into a little more detail when it comes toinventory management incorporating some basic mathematics and algorithms.It explains each and every step of the logistics "supply chain"process with great detail and finesse. This book can almost (not entirely)replace a swag of other logistics books within its genre. A perfect textfor any logistics/industrial engineering curriculum. ... Read more

Reviews (38)

Now, it has a competitor
Greene is NOT a very good book. However it not a bad one either.

It is only a comprehensive book on Econometrics, more suitable for applied economists for a quick review.

I do not like the author's style of presenting the proof before the theorem. This makes it difficult and confusing to follow.

Before buying it, the customer should take a look at a more recent, well organized, great competitor, and better book both for practitioners and a more theoretical econometrists:

Ruud, Arthur. An Introduction to Classical Econometric Theory.

An Indispensable Book for Applied Econometrics
This is an indispensable book for applied econometrics students. It has lots of applied and a reasonable degree of theoretical stuff. What is missing in many advanced econometrics textbooks, including the popular books Davidson and MacKinnon (1993) and Hamilton (1994), is some data sets and some results based on them so you can learn econometrics by actually doing it, not by simply having to trust the author's results. I mean, after all, what is the point of putting actual data examples in a book if the reader cannot replicate them because he does not have the data? In the preface to his important 1971 textbook Principles of Econometrics Theil remarks that "...nobody should believe that he will be able to handle statistical data in economics without touching actual data." I cannot agree more.
I use Ox and Gauss for my econometric analyses and write lots of codes. The very first thing I need is a clear explanation of the theory and some results to check the accuracy of my codes. In those respects Greene's book is the champion. You have the theory, the data sets and the results. Replicate them and learn. I believe this is how you can learn applied econometrics.
Besides Greene's book, I could also recommend "Patterson (2000) An Introduction to Applied Econometrics" for applied time series. You can get the data sets used in this book by contacting the author.
Finally, answering some critics. First, I do not think that evaluations of this book based on some course experiences are unbiased. If you use a book to pass a Ph.D. course its usefulness depends very much on the structure of the course. And some books are better suited to the course than others. Actually, no book can beat a good set of lecture notes. Second, if you think you are a serious econometrics student, go to the original papers for proofs and the sources of the mathematical equations. If you look for them in textbooks you are in the wrong place. Third, the author does not just throw in a lot of numbers. He gives you the theory and the results. The rest is your job. If you cannot figure out how he got those numbers, get a tutor.

Econometrics Analysis by William H. Greene
I used the first edition of this book as a graduate student in my econometrics class. The book is very confusing and hard to understand. It's still of no help to me now that I am a professor and writing research paper. Whenever I need a review in econometrics I use Judge et all; "The Theory and practice of econometrics." It is a better book, well written, and easy to follow. Unfortunately it is off print. We need a better book than the one by Greene. If it was for me, this book should be put where it belongs, in the garbage.

this book stinks
i bought this book as a grad student a couple of years ago. as the title of this review suggests, this book stinks. it's poorly organized, and the proof and derivations (when included) are difficult to follow not because the math is hard but because greene's not a good mathematical writer. if you have to learn econometrics, go with hayashi and hamilton; they're way better.

just so confusing
Having used Greene's text for my undergraduate econometrics course I think its really important to point out its faults.
1The layout is confusing and hard to follow,
2the math is clunky and inelegant
3its more useful as a weapon (SO heavy)
4Plus it gives asymptotic results in a somewhat misleading manner.
5It is far from impossible to cover results of the same level in a clearer and more COHERENT way
6Probably its only strong point is that it covers a vast number of topics.
7Why is this text so widely used? ... Read more

Book Description

This distinctive book features a running case study at the beginning and end of each chapter that explores the decision-making processes of managers within a hypothetical company. It creates a vivid, dynamic business setting that highlights microeconomic theory and the tools of quantitative analysis used in management decision-making. In addition, actual business examples from the popular press—including numerous international examples—are incorporated into the chapters to reinforce the connection between economic and real business situations.Chapter topics cover supply and demand, demand elasticity, demand estimation, forecasting, the theory and estimation of production, the theory and estimation of cost, competition and monopoly, monopolistic competition and oligopoly, special pricing practices, economic decision making in the 21st century, capital budgeting, and risk and uncertainty.For today's managers in government and industry. ... Read more

Book Description

A general introduction to the three primary aspects of Finance and examination of how they interrelate.The book discusses financial institutions and their roles in helping to allocate savings in the economy, along with a description and analysis of securities issued and traded in money and capital markets.The book covers fundamentals of investing in stocks, mutual funds, derivatives, and other marketable securities with an emphasis on securities markets, mechanics of trading, techniques of analysis, diversification, and valuation of assets.Finally, the book lays out the processes, decisions structures, and institutional arrangements concerned with the use and acquisition of funds by a firm.This will include the management of the asset and liability structure of the firm under certain and risky situations. ... Read more

Book Description

Every day, stocks, bonds, and currencies bounce wildly in response to new economic indicators. Money managers obsess over those statistics, because they provide crucial clues about the future of the economy and the financial markets.

Now you can use these indicators to make smarter investment decisions, just like the professionals do.You don't need an economics degree, or a CPA... just this easy-to-use book.

Former TIME Magazine senior economics reporter Bernard Baumohl has done the impossible: he's made economic indicators fascinating.

Using real-world examples and stories,Baumohl illuminates every U.S. and foreign indicator that matters.Where to find them.What they look like. What the insiders know about their track records. And exactly how to interpret them.

Whether you're an investor,broker, portfolio manager, researcher, journalist,or student, you'll find this book indispensable.Nobody can predict the future with certainty. But The Secrets of Economic Indicators will get you as close as humanly possible.

What the numbers really mean...

...to stocks, bonds, rates, currencies, and you

Ahead of the curve: spotting turning points

Calling recessions and recoveries in time to profit from them

Leading indicators: where's the economy really heading

Decoding initial unemployment claims, housing starts, the yield curve, and other predictors

Beyond the borders

Why foreign indicators are increasingly important—and how to use them

Making sense of indicators in conflict

What to do when the numbers disagree

Finding the data

Free web resources for the latest economic data ... Read more

Reviews (5)

This is not a good book for beginners.
This is the textbook required by my professor. When I read it, I just felt that the author wastes a lot of words on some very simple and straightforward points. But as to those very confusing concepts and complicated procedure about how the economy adjusts, he uses as few words as possible. For example, when talking about the adjustment of inflation expectation, the author doesn't explain why and how the new equilibrium point appears at point E2 in figure 8-2. And I think this is very important to understand the underlying theory. Also, there are many inconsistent points and some critical typos in this book.

Just fine
I gotta buy this book for my class. I have some troubles with the topics inside. I agree that this is a good book but I gotta read from other sources to get more details. The author didn't make clear in many points. However, he covered all of the important topics. If you have some economic background, it would be your wonderful book, but for me it's not.

Good but poorly design
It is a good book. The author ,however, put "Figures and Graph" on the next page so that you have to turn pages back and forth most of the time to make senses. That will slow down your reading. Other than that you will enjoy reading the book.

A very helpfull book
Macroeconomics makes it easier to understand the very complex fundamentals of macroeconomics. It not only describes the different economic principles but also explaines them and examples are used frequently. Most chapters have at least a case study that shows how the ideas of the chapter can be applied to real-world episodes. The book consist of seven parts which cover different areas. The book provides information about unified development of core business cycle theory; new perspective on inflation, unemployment, growth and productivity and much more. What makes this book unique is that not only it deliver theories and concepts but also possible explanations to the central macroeconomic puzzles. I realy recomend this book.

An easy understood book
The book provides informations about business cycle, unemployment, inflation, and economic growth. Not only it describes Cinderella confluence of low unemployment and inflation but actually explains it. The book is easilly understood even by people who don't know anything about economics. The entire presentation is graphic, with simple ninth-grade algebra. Examples are used frequently. The book will equip you with the principles you need to make sense out of the conflicting and contradictory discussions of economic conditions and policies in newspapers and news magazines. I higly recomend this book to people who want to know more about how economi changes influence you. ... Read more

Book Description

John Meriwether, a famously successful Wall Street trader, spent the 1980s as a partner at Salomon Brothers, establishing the best--and the brainiest--bond arbitrage group in the world. A mysterious and shy midwesterner, he knitted together a group of Ph.D.-certified arbitrageurs who rewarded him with filial devotion and fabulous profits. Then, in 1991, in the wake of a scandal involving one of his traders, Meriwether abruptly resigned. For two years, his fiercely loyal team--convinced that the chief had been unfairly victimized--plotted their boss's return. Then, in 1993, Meriwether made a historic offer. He gathered together his former disciples and a handful of supereconomists from academia and proposed that they become partners in a new hedge fund different from any Wall Street had ever seen. And so Long-Term Capital Management was born.
        In a decade that had seen the longest and most rewarding bull market in history, hedge funds were the ne plus ultra of investments: discreet, private clubs limited to those rich enough to pony up millions. They promised that the investors' money would be placed in a variety of trades simultaneously--a "hedging" strategy designed to minimize the possibility of loss. At Long-Term, Meriwether & Co. truly believed that their finely tuned computer models had tamed the genie of risk, and would allow them to bet on the future with near mathematical certainty. And thanks to their cast--which included a pair of future Nobel Prize winners--investors believed them.
        From the moment Long-Term opened their offices in posh Greenwich, Connecticut, miles from the pandemonium of Wall Street, it was clear that this would be a hedge fund apart from all others. Though they viewed the big Wall Street investment banks with disdain, so great was Long-Term's aura that these very banks lined up to provide the firm with financing, and on the very sweetest of terms. So self-certain were Long-Term's traders that they borrowed with little concern about the leverage. At first, Long-Term's models stayed on script, and this new gold standard in hedge funds boasted such incredible returns that private investors and even central banks clamored to invest more money. It seemed the geniuses in Greenwich couldn't lose.
        Four years later, when a default in Russia set off a global storm that Long-Term's models hadn't anticipated, its supposedly safe portfolios imploded. In five weeks, the professors went from mega-rich geniuses to discredited failures. With the firm about to go under, its staggering $100 billion balance sheet threatened to drag down markets around the world. At the eleventh hour, fearing that the financial system of the world was in peril, the Federal Reserve Bank hastily summoned Wall Street's leading banks to underwrite a bailout.
        Roger Lowenstein, the bestselling author of Buffett, captures Long-Term's roller-coaster ride in gripping detail. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein crafts a story that reads like a first-rate thriller from beginning to end. He explains not just how the fund made and lost its money, but what it was about the personalities of Long-Term's partners, the arrogance of their mathematical certainties, and the late-nineties culture of Wall Street that made it all possible.
        When Genius Failed is the cautionary financial tale of our time, the gripping saga of what happened when an elite group ofinvestors believed they could actually deconstruct risk and use virtually limitless leverage to create limitless wealth. In Roger Lowenstein's hands, it is a brilliant tale peppered with fast money, vivid characters, and high drama. ... Read more

Reviews (114)

Engrossing read
The author gives an engrossing read about the LTCM debacle in this book. His writing style, in my opinion, really captures my attention and almost turns the book into a Grisham-style page-turner. After reading the book, you will have a better idea of the reasons why the fund failed. Also, you will gain more qualitative knowledge about hedge funds, derivatives markets and investing in general. However, if you are looking for equations and quantitative stuff, then sorry man, you will be greatly disappointed. Don't expect to find the Black-Scholes equation here. Nor do I think it's necessary. As a finance student, I'm tired of having to know the complex equations and quantitative stuff inside-out, without the slightest idea of how they should be used and their limitations.
If you have the basic idea or training in quantitative finance, the this book is a must-read. It sheds light on the untold stories in derivatives trading. The downfall of LTCM should be a very somber and sobering reminder of the limitations of the derivatives markets. Too much credit is given to "risk management" and "quantitative finance". I think every portfolio manager and derivatives trader should keep this in mind.

BIG MEN MAKE SMALL MISTAKES!
Small traders who break the simple rules are called 'dumb' by the professionals in the industry in their magazine articles, interviews on radio & TV etc. Here we have a group of top academics including Nobel Prize winners in economics who headed a firm that made some of the most silly 'mistakes' that caused them to lose over FOUR BILLION DOLLARS1 The reason: simple over-trading and mis-management of funds - just what the little guy is always told not to do!

This book gives a brief introduction to the various players involved. It gives an indicationl of the greed involved, not only by over-leveraging but by forcing investors to take back their money so the partners could put all their money in the fund and make all the profits for themselves. Interestingly, they did these people a great favor by preventing them from going broke.

Later in the book, when the crisis is really brought forward, we are given a detail day to day account of the stress and problems that the fund managers were creating for themselves and the rest of Wall Street as many banks and other financial institutions had tied up hundreds of millions with this firm. In the end the Federal Reserve arranged a bailout with fourteen major banks to save day.

Ironically, the super-losers went and created another fund after this big crash and sure enough they raised a few hundred millions in trading capital so the 'bright' fellows can get running again!

Not enough Cream on the Coffee
1997, 30 year Treasury Bonds Fell to 5.58; traders were selling short to hedge against riskier bonds, treasuries rallied and spreads increased between bonds; Japanese bonds dropped opposite of the bet by LTCM.

Blame the Asian flu, IMF unresponsiveness, and Salomon Barney Smith abandonment of its arbitrage positions as causes for the evaporation of 4 billion dollars LTCM within months. LTCM was too big, possessing $128 billion in assets and $3.6 billion in the bank and 2/5 of money belonging to the owners. Notation derivates reaching leverage 100 to 1 preventing rapid sell off and bankruptcy out of question, for bankruptcy would have caused a world cascade economic crash and loses reaching above $1 trillion. Bankruptcy was not an option; LTCM was too big to fail and the Fed knew it. LTCM only chance was too secure money from warranties, loans, or a buy out; none of which in the end would save them. In the end, the Feds 16 banks would invest $250 million each with a total accumulation of $4 billion dollars rescuing LTCM and the partners would leave with relatively nothing in their pockets. How did smartest guys on Wall Street fail? How did the impossible happen?

1997, Indonesia, Rupiah dropped 85 percent as currency traders forced devaluation revealing a corrupt banking practices and overextension of bad credit; volatility rose to 27 percent.

1998 LTCM bet that no future recession would occur and believed the Bond margins would narrow. Instead, the world economy were experience new global forces as communism was breaking down, China's GNP was heating up, and East Germany was experiencing new economic freedoms. A U.S - 56 point margin increase on the swap, England - 45 point margin, and German - 20 point margin and LTCM was losing money on all of its markets. LTCM had previously negotiated a warrant by UBS and UBS was being seriously exposed while LTCM was claiming "Future expected returns are good" although Equity Volume was in trouble, Swap margins were increasing, and Treasuries were falling as investors fled to safer securities and as Treasuries were being bought up their rates dropping to 5.56.

With Indonesia falling - all eyes were turned to Russia. There was no rescue by the IMF for the Russian ruble. Shares in Europe and Turkey were weak and Venezuelans were buying dollars all the while swaps margins increased. Aug 21, the Dow fell 280 points and investors continued to prefer the safest bonds, the 30 year treasures, US swaps increased to 76 points, 20 points in one day, Britain swaps increased to 62 points and mortgage spreads spread to 121 points, high yield climbed to 276, and treasurers were at 13. LTCM lost $558 million in a single day, 15 percent of their capital. LTCM was certain the markets would correct rationally and the spreads converge. Losses accumulated faster because leverages increased. Additional $200 million in funding was requested from Merrill Lynch. Hedge funds were not considered a bank and so credit extension regulation was constrained. The drop in LTCM performance caused banks to tighten their credit lines to hedge funds. In fact, the hedge funds poor performance screamed default and banks demanded their entitlement to repayment. LTCM was very close to insolvency. Mattone told Meriwether, "when you're down by half, people figure you can go down all the way" and "your out". Aug 31, the DOW crashed 512 points, Hong Kong Authority stopped supporting local markets by buying local shares. For the month of Aug, LTCM had lost $1.9 billion, 45 percent of its equity capital, and still had $125 billion in derivative assets. Death was imminent, the leveraging could not be stopped, LTCM was immobilized by its size, and Bear was threatening to suspend trading. After reviewing LTCM books, Bear allowed LTCM trades and gave a harsh warning, if they dropped below $500 million all trades would halt.

Sep 10, LTCM experiences a sum lose of $500 million dollar for five days of trading. LTCM still has 7,000 derivative contracts totaling $1.4 trillion dollars.

In 1987, Alan Greenspan was appointed as chairman of the Federal Reserves. Greenspan did not totally understand hedge funds, they were fairly private, and the Fed had no authority over them. Greenspan was nervous about the credit lines extended too these funds. Some call the funds, banks. What were the hedge funds? What is a bank?

The New York Fed keeps in touch with its branches and they talk with private industry, so supposedly the Fed keeps a pulse on the private sector. The Fed has a trading desk and trades $450 billions in treasuries, buying and selling to affect the amount of available money supply. If the Fed buys treasures, this act increase money supply and gives banks more money for banks to loan, and interest rates decrease. If the Fed buys back treasures, this act decrease money supply and makes less available loanable money and interest rates rise.

The volatility of LTCM was rising because it was so vulnerable. LTCM was being pressured by Goldman as they continued buying down increasing spreads. Goldman exasperated the European bond market cutting apart LTCM.

Warren Buffet was a seemly friend but of no help to LTCM. Berkshire Hathaway made an offer: 250 million for $3.57 billion to stabilize the fund and all partners fired. Legal confusion forfeited the deal. The last thing the economy wanted was an economic meltdown, so the Fed offered a deal and the LTCM partners were out in the cold with tears in their eyes, a perfect model (Merton, Black, Scholes) and not enough liquid money to save them against the impossible.

"...in crisis, correlations go to 1"
The author of this book is a journalist - not a trader or banker - and it's helpful to remember that as you read through this moralistic account of LTCM's rise and fall.

Lowenstein has the audacity to write of Merton, a Nobel Laureate, that he held a "naive belief in perfect markets." Perfect markets may be mythical, but the author is not qualified to call this view naive. The output of the model is as important as the tenability of its' assumptions.

In the end, the fund was too big and successful, not hubristic, to remain in its' sphere of expertise (bond arbitrage) and was forced to become the 800-pound gorilla in other markets like merger arbitrage. Yes, the top two traders were arrogant (a requirement for traders) but the markets broke the fund, not Hilibrand and Haghani.

More details on the transactions would have been interesting but these may have burdened the flow of the book.

There are copious footnotes and the author does a nice job of outlining the players and their stakes in the fund.

Ideology and greed defy common sense
There should be a sinking feeling in the pit of your stomach as you read this book. Long-Term Capital Management was almost guaranteed to fail from its outset and, when the end finally did come, the fund's collapse almost took a big chunk of Wall Street with it. The scary part is that there are more LTCMs out there, operating without regulatory oversight and all subject to wrong-headed economic hypothesizing as the basis for their trading operations.

The poison pill at the center of Long-Term Capital Management's very being was the efficient market theory, an almost universal belief among economists and financiers alike that free markets always operate in the most effective, logical manner possible over the long term. They don't, of course, and that refusal to acknowledge fundamental human irrationality led LTCM over the brink.

Lowenstein does an outstanding job of untangling the fund's complicated derivatives trades and explaining how the fund eventually over-leveraged itself into a sudden collapse. We normally read business stories like this for the thrill of seeing moral hazard at work, seeing the rich fall from grace and thinking how well-deserved that fate is. I would recommend, however, that you approach this book as a template for how the next Great Depression could spring from the simultaneous self-destruction of derivatives trading firms. And thanks to Roger Lowenstein, you don't have to be a genius to see how it could happen. ... Read more

Book Description

This easy-to-read, accessible, macro-first principles book engages readers with familiar real-world examples and applications that bring economics to life. The authors follow an Explore and Apply theme that shows learners how economics is a part of their everyday lives, and how it can be a useful tool in making personal decisions and evaluating policy decisions.The Enhanced Edition contains more detail and more in-depth coverage of key economic concepts, expanded multiplier coverage, new coverage of crowding out, greater detail on exchange rates, more extensive treatment of antitrust, and much more.For individuals interested in the principles of economics—and how those principles effect the details of daily living. ... Read more

Book Description

The tenth edition of this market-leading text continues its tradition of providing a solid foundation of economic understanding for use in managerial decision making.It offers a practical treatment of economic theory and analysis in an intutive, calculus-based format.Its focus is on presenting those aspects of economic theory and analysis that are most relevant to students of business administration, and a wide variety of examples and simple numerical problems are used to illustrate the application of managerial economics to a vast assortment of practical situations.The nature of the decision process and the role that economic analysis plays in that process are emphasized throughout.This major revision is designed to maximize accessibility for a student audience with little or no background in economics, and no previous training in calculus. ... Read more

Reviews (1)

This is a really good book
Economics does not have to be dry and boring, and Hirschey proves it.I especially like the fact that the book explains economic theory in plain English and then shows how it works with real-world examples.This is a really good book.No wonder its a best-seller. ... Read more

Book Description

This current, accurate and detailed industry guide for financial service professionals examines life and health insurance simultaneously from the viewpoints of the buyer, the advisor, and the insurer—providing a comprehensive and unbiased treatise on individual and group life; a forthright appraisal of life and health insurance industry products with careful consideration of the environment; and a complete examination of life insurance company operations and regulation. Bases financial treatment of life insured operations on modern financial theory, and devotes entire chapters to the economics of life and health insurance; individual life and health insurance policies; life and health insurance evaluation; the uses of life and health insurance in personal and business planning; government and employee benefit plans; and the management, operation, and regulation of life insurance companies. Offers a strong global orientation, supporting fundamental concepts with an extensive integration of economic and financial theory and international comparisons, and examines how today's health insurance products fit into a broad framework from a contractual, cost, and performance viewpoints. New chapters on the tax treatment of life and health insurance address such areas as estate planning, retirement planning, and the business uses of life and health insurance. For financial planners, salesmen, actuaries, investment managers, attorneys, CPAs, and other financial service professionals.

Reviews (3)

Life and Health Insurance (13th Edition)
New edition of a venerable classic textbook first published in 1915

Comprehensive and concise
This is an excellent reference book for anybody in the life insurance business, whether you are a novice or an old hand. Comprehensive, easy to understand, and concisely written.

an excellent reference book
This book is an excellent reference book. Just by looking at its Edition Number -- 13, you will know how important this book is in the industry. ... Read more

Book Description

The national bestseller that defines a new economic class and shows how it is key to the future of our cities.

The Washington Monthly 2002 Annual Political Book Award Winner

The Rise of the Creative Class gives us a provocative new way to think about why we live as we do today-and where we might be headed. Weaving storytelling with masses of new and updated research, Richard Florida traces the fundamental theme that runs through a host of seemingly unrelated changes in American society: the growing role of creativity in our economy.

Just as William Whyte's 1956 classic The Organization Man showed how the organizational ethos of that age permeated every aspect of life, Florida describes a society in which the creative ethos is increasingly dominant. Millions of us are beginning to work and live much as creative types like artists and scientists always have-with the result that our values and tastes, our personal relationships, our choices of where to live, and even our sense and use of time are changing. Leading the shift are the nearly 38 million Americans in many diverse fields who create for a living--the Creative Class.

The Rise of the Creative Class chronicles the ongoing sea of change in people's choices and attitudes, and shows not only what's happening but also how it stems from a fundamental economic change. The Creative Class now comprises more than thirty percent of the entire workforce. Their choices have already had a huge economic impact. In the future they will determine how the workplace is organized, what companies will prosper or go bankrupt, and even which cities will thrive or wither. ... Read more

Reviews (36)

Creative Class
Richard Florida's book, 'The Rise of the Creative Class', provides readers with some interesting ideas about economic and social growth. Throughout the book, Florida relates economic growth to creativity and diversity, without one, you may not have the other. In addition, he identifies 3 Ts as necessary for growth: technology, talent and tolerance. While planning for the future, cities no only have to look at economic development, but must look at the climate the city provides for the arts. Recently moving from South Dakota, one of the areas Florida describes as have high social capital but lacking economic growth, Florida's ideas about fostering an environment in which creativity thrives ring true. Economic development does not mean acquiring a chain restaurant, but it should include developing an authentic local environment that allows creativity to flourish.

Many criticize Florida's use of the Bohemian Index and Gay Index (however well it correlates to economic growth), citing the information does not apply to the majority of middle class Americans. The paperback edition of Florida's book contains a preface where the author points out that the creative environment is not limited to a city itself, but a region that allows people to live in the environment that suits them the best, i.e. Silicon Valley and San Francisco together provide an environment to growth. I do, however, find Florida's diversity ranking a bit lacking. Honolulu, one of the most diverse areas I have lived in, does not seem very diverse, because Asians and Pacific Islanders were considered as one racial/ethnic group.

Richard Florida for President
Richard Florida sees clearly what our present leadership does not- our country is in transition and the old rules no longer apply . He systematically shows through his research that cities that are thriving economically, intellectually and culturally are developing around a base of diversity, flexibility and tolerance. Talented people are moving to places that appeal to them and will allow them to reach their potential. He shows the only non-renewable resource is time and the only renewable resource the human intellect. Type his name into Google and you will find pages of growing city planning commissions either listening to him speak or their members quoting his book.
Run, Richard, run!

Insightful!
The good news is, Richard Florida's book recognizes the growing economic and sociological impact of creativity. The bad news is that in just two years, it has lost some of its gloss. The collapse of the bull market, the popping of the dot.com bubble, the 9/11 trauma, each took some shine off of the creative economy, with its casual dress days, flexible schedules and free rides. But even though this appraisal occasionally sounds quaint, we believe that the book's faith in the transforming economic and social power of creativity, its broad view, and its excellent references and quotations make it worth recommending.

a relic of the bubble economy
This book was conceived during the 1990s when the high-tech bubble economy caused a labor shortage which made it possible for recent college grads with the right "hot" skills to "write their own tickets". Professor Florida wondered why Pittsburgh, his home town, was having trouble attracting high-tech talent, and graduates from local schools were choosing to move away. He found that these young, single, upper-income, well-educated people were making job choices based on geography. They wanted to live somewhere "fun" for young people. That is with amenities such as a vibrant night life, opportunities for outdoor recreation such as biking, rock climbing, etc. Thus they chose places like Austin TX with its music scene over Pittsburgh with its symphony.

This is interesting enough, and Florida makes the connection to earlier work (especially that of Jane Jacobs) on what makes a city an "authentic" and interesting place to live.

It is well known that as time goes on, so-called "knowledge workers" are becoming a larger and larger part of the economy. However Florida, perhaps driven to some "irrational exuberance" by the bubble economy we were living in when he was writing this, makes some pretty outlandish claims for the importance and power of this class of workers (which he calls "the creative class"). As of mid-2004, this all seems a quaint relic of 1990s "new economy" optimism.

He also fails to address two things which have had a huge impact on the labor market in recent years:

He mentions but does not address at any length the collapse of the high-tech bubble, and what impact this change will have on the phenomena he describes. It would seem that most of what he describes is (at least for now) no longer true, as high-tech workers can no longer pick and choose but are now in the position of being glad to find any job at all.

He does not mention at all the phenomenon of overseas outsourcing. This may not have been a hot topic when the book was written but by the time (Fall '03) he wrote the preface to the paperback edition it was so, and he does not even mention it, despite the fact that it is at the very least having a large psychological effect on the high-tech job market.

Leaves us hanging
This book presents an interesting concept but the author doesn't tell us what to do with this information. He suggests that the "creative class" must become conscious of their identity as a class and begin to act in concert, but he doesn't outline a method for doing this. One would think that he would want to provide a platform for the unification and interaction of a class which he has identified.

The author suggests that municipalities would be wise to structure their geography to attract creative class individuals. Another approach, which he does not consider, would be a strategy to develop more creative class individuals from the resident population. Unlike other natural resources, which are finite, creative class capital can be generated by educational opportunities and personal development.

An interesting thought occurred to me while reading this book: Dr. Florida describes creative class individuals as uninterested in group conformity. Meanwhile, the major political parties become increasingly polarized and intolerant of dissent within the ranks, sidelining independent-thinking "moderates." Thus public policy is being developed by parties who have driven the creative class out from their midst. This, more than anything, may be the most critical issue for the creative class to confront. ... Read more

Book Description

Intermediate microeconomics is both fun and intellectually challenging in this new edition, written by the author of The Armchair Economist, the popular trade book that explains basic economics to the general public. The text provides an exceptionally friendly and application-rich presentation, combined with a rigorous and careful development of microeconomic theory. All of the standard topics of intermediate price theory are included, as well as innovative topics such as alternative normative criteria, efficient asset markets, contestable markets, antitrust law, human capital, and the demand for public goods. A unique unifying theme of social welfare is used with little higher-level mathematics. ... Read more

Reviews (5)

Excellent book for beginners
This is one of the best books I have ever read. Anyone who is just beginning with microeconomics, should start with this book. It is very simple and goes right to the point.

Very readable and challenging textbook
This is an excellent textbook for any intermediate level price theory or microeconomics course. The author is right when he says beginning students should find it easy to grasp and advanced students will find the material challenging and thought provoking. The portion devoted to a review of elementary topics is small, and I would not recommend this book as an introduction to economics. Any undergraduate who encounters this book should breathe a sigh of relief - it is definitely one of the better texts in the subject. Instructors looking for a good textbook would do well to choose this one.

The "study guide" that is sometimes packaged with the textbook is not entirely useful; the number of problems actually in the textbook should be more than sufficient. Overall, this is a great survey of price theory with Landsburg's signature examples and interesting applications.

I agree! Excellent textbook!
I recommend this book for some undergraduate student to take an intermediate microeconomics! Lucid explanation and some pictures are the finest.His another work, Armchair economist,is also nice. Randsburg did many good jobs!

Excellent text
I have only read two textbooks in my life that I would recommend to the public in general. This is one. If you have never studied economics, start here. Extremely readable. Note in particular the discussion on whether college should be outlawed (Chapter 9, "Knowledge and Information"), the tragic story of Treasury Bill #GS7-2-179-46-6606-1 (Chapter 17, "Allocating Goods over Time") and the Pigs-in-the-Box problem (Chapter 12, "Game Theory"). Don't succumb to the Nash equilibrium! Read Price Theory.

great!!
One of the best books on Price Theory. He really elucidates the subject matter. The questions given at the end of the chapters challenge you to the limit. ... Read more

Amazon.com

IDEO, the world's leading design firm, is the brain trust that's behindsome of the more brilliant innovations of the past 20 years--from the Applemouse, the Polaroid i-Zone instant camera, and the Palm V to the "fat" toothbrushfor kids and a self-sealing water bottle for dirt bikers. Not surprisingly,companies all over the world have long wondered what they could learn from IDEO,to come up with better ideas for their own products, services, and operations.In this terrific book from IDEO general manager Tom Kelley (brother of founderDavid Kelley), IDEO finally delivers--but thankfully not in the step-by-step,flow-chart-filled "process speak" of most how-you-can-do-what-we-do businessbooks. Sure, there are some good bulleted lists to be found here--such as thesecrets of successful brainstorming, the qualities of "hot teams," and, towardthe end, 10 key ingredients for "How to Create Great Products and Services,"including "One Click Is Better Than Two" (the simpler, the better) and "GoofProof" (no bugs).

But The Art of Innovation really teaches indirectly (not to mentionenlightens and entertains) by telling great stories--mainly, of how the bestideas for creating or improving products or processes come not from laboriouslyorganized focus groups, but from keen observations of how regular people workand play on a daily basis. On nearly every page, we learn the backstories ofsome now-well-established consumer goods, from recent inventions like the PalmPilot and the in-car beverage holder to things we nearly take for granted--likeIvory soap (created when a P&G worker went to lunch without turning off hissoap mixer, and returned to discover his batch overwhipped into 99.44 percentbuoyancy) and Kleenex, which transcended its original purpose as a cosmeticsremover when people started using the soft paper to wipe and blow their noses.Best of all, Kelley opens wide the doors to IDEO's vibrant, sometimes wackyoffice environment, and takes us on a vivid tour of how staffers tackle a designchallenge: they start not with their ideas of what a new product should offer,but with the existing gaps of need, convenience, and pleasure with which peoplelive on a daily basis, and that IDEO should fill. (Hence, a one-piece children'sfishing rod that spares fathers the embarrassment of not knowing how to teachtheir kids to fish, or Crest toothpaste tubes that don't "gunk up" at themouth.)

Granted, some of their ideas--like the crucial process of "prototyping," orincorporating dummy drafts of the actual product into the planning, to work outbugs as you go--lend themselves more easily to the making of actual things thanto the more common organizational challenge of streamlining services oroperations. But, if this big book of bright ideas doesn't get you thinking ofhow to build a better mousetrap for everything from your whole business processto your personal filing system, you probably deserve to be stuck with themousetrap you already have. --Timothy Murphy ... Read more

Reviews (49)

Less than expected
The Art of Innovation is the story of the famous Palo Alto based design firm, IDEO. The book is easy to read and moves quickly. The author, Tom Kelley, is the brother of founder David Kelley. Tom is the General Manager and is an ex-management consultant. This is important because the book really devolves into a light treatise on business management practices. This makes sense since given Tom Kelley's responsibilities at IDEO and his background. It also explains the Tom Peter's Foreword. If you like Tom Peter's books, you will enjoy this book.

If you are looking for real insights into the IDEO design process you will be disappointed. Most of the insights are of a personnel management nature, and even those are at a relatively high level. Mr. Kelley pokes more than a few veiled barbs at the slow industrial giants who simply cannot compete with the brain power and management prowess at IDEO. That may sound sarcastic, but Mr. Kelley's pride in his company often crosses that fine line into arrogance.

There are a few actual projects described to point out how valuable a certain IDEO practice is. There are repeated references to IDEO's contribution to the invention of the Apple mouse and follow-up work on the Microsoft Mouse. Also, a great deal of time is spent talking about the redesign of the common shopping cart that was done in one week for a segment on Nightline. I know that IDEO has had many important clients and recent important projects. Perhaps they can't talk about them because of non-disclosure agreements. There are color pictures of some products at the beginning of each of 15 chapters but often there is no mention of those products in the text. Some black & white photographs of products and the IDEO workspaces also accompany the text. There are no diagrams or illustrations.

A great deal of the book outlines the emphasis that IDEO puts on the treatment of their employees and their penchant for quick and frequent prototyping as a key to success. All projects start by assigning a "hot" team and letting them brainstorm and prototype their way into some great ideas. No details are given on how the teams are formed or managed.

This book is for you if you are looking for a light management practices book and just a little insight into a premier design firm. You will probably be disappointed if you want to find out how products are designed or what specific processes are used to manage the design process. You also will not get a great deal of competitive information about IDEO. The book assumes that you have at least a general idea of what Industrial Design is about.

Tom Kelley admits that workshops about the "IDEO way" have been turned into a profit center. They give seminars on how to organize product development at client companies. I could see IDEO including this book with their seminar, or perhaps they could give it to a prospective client to whet their appetite. It definitely leaves you wanting more information. I am left wondering, "How much is that seminar, and will they let me in?"

Innovation for Fun as Well as Profit
There are dozens of excellent books which discuss innovation. This is one of the best but don't be misled by the title, "Lessons in creativity from IDEO, America's leading design firm." Unlike almost all other authors of worthy books on the same subject, Kelley does NOT organize his material in terms of a sequence of specific "lessons"...nor does he inundate his reader with checklists, "executive summaries", bullet points, do's and don'ts, "key points", etc. Rather, he shares what I guess you could characterize as "stories" based on real-world situations in which he and his IDEO associates solved various problems when completing industrial design assignments for their clients. "We've linked those organizational achievements to specific methodologies and tools you can use to build innovation into your own organization...[However, IDEO's] 'secret formula' is actually not very formulaic. It's a blend of of methodologies, work practices, culture, and infrastructure. Methodology alone is not enough." One of the greatest benefits of the book is derived from direct access to that "blend" when activated.

It is extremely difficult to overcome what James O'Toole characterizes, in Leading C