Reviews (135)

The feel-good business book of the year
It's true that the authors of The Cluetrain Manifesto aren't saying anything new to those who've believed in the power of the Internet from the first time they launched a web browser or read a newsgroup. But they've enumerated those beliefs in a very compelling and awe-inspiring volume of the truths of operating in the Internet Economy. Namely that doing business in this world means opening up your organization to the scrutiny of your customers and every member of your organization; that markets are conversations and those who can best facilitate communication will triumph; that information yearns to be free. If you're looking for a how-to book or a silver bullet to reinvigorate your business, look elsewhere. But if you believe in the power of technology to connect you to your customers, or desperately want to believe, get on board the Cluetrain.

NOT just about the Internet
I really wanted to rate this book higher than three stars. In fact, if it were only thirty or forty pages, I would have been trying to rate it at ten stars! It starts out by making bold, mostly clear, sometimes odd statements. All of which are hugely entertaining and frequently provocative. The book does drone on a bit though, and I found it tedious towards the end.

I was surprised at the content, however. To me it was much less about how the Internet is changing the economoy and business, and more about how it is changing how people connect. Far beyond a clinical explanation (this is a Manifesto after all), it postulates about the changes this newfound, hyperlinked communication has made in employee, customer, and vendor expectations.

I happen to agree with almost every message. Down with empty happy-talk and command and control management...long live capability, knowledge, and real, heart-felt communication.

This book would certainly have received full marks from me had it been less repetitive.

The end of business as usual
Hard to recommend such a small publication when the entire thing is now available for download at the website.
Markets are conversations. This is good.
Mass marketing is not a conversation. That is bad.
The authors leave themselves open to some fair criticism - their ideas aren't fully developed nor are their any clear suggestions as to implementation. It reads more as a protestation against existing norms than a viable alternative.
Find a second-hand copy. It's worth a read but not quite worth the price.

If you've been asleep for the last four years, read this
I think the target audience is somebody who completely missed out on the late nineties, but who would like a very light read to understand the change in openness and freedom in conversations that most folks now take for granted. There's not a lot of content here -- you can skim about 10% of the book and get seemingly 99% of the content. If you're really "clueless", hit the web version instead and save the effort of grabbing this book.

Not bad, but lots missing...
I have mixed feelings about this book. At the beginning, it makes a lot of sense, with discussions about markets and the power of the Internet. Here it succeeds. The problem is that it runs out of steam. A lot of concepts are repeated over and over and some of them make less sense the more they are repeated. There are some good ideas about using the technology to reconnect with customers, co-workers and the world at large. The case histories are also quite illuminating. These guys have clearly been there and done it. The problem I have is that they think the Internet is somehow a magic cure for a lot of these problems. Technology by itself never fixes anything and I say this as someone who is an IT professional.

I found it an interesting read, but was left wanting more from it in the end. Some of the observations about organisational hierarchy and culture I think are over simplified and at times plain wrong. As a companion to the book, I would recommend readers try "Good to Great" by Jim Collins, which deals with how some organisations make the jump and some don't. It's an interesting counterpoint, as it focusses a lot on effective management of people, any organisation's most valuable asset. Cluetrain is worth a read, but keep some salt handy.... ... Read more

Book Description

This book was first printed in 1938, having been written as a Ph.D. thesis at Harvard in 1937. Our good friend, Peter Bernstein mentioned this book several times in his excellent Capital Ideas which was published in 1992. Why the book is interesting today is that it still is important and the most authoritative work on how to value financial assets. As Peter says: "Williams combined original theoretical concepts with enlightening and entertaining commentary based on his own experiences in the rough-and-tumble world of investment."Williams' discovery was to project an estimate that offers intrinsic value and it is called the 'Dividend Discount Model' which is still used today by professional investors on the institutional side of markets. Appendix, Tables, Index. ... Read more

Reviews (3)

Unrated...too dated...
This book is really the doctorate thesis for John Burr Williams. It was written in the 1930's and weighted heavily on the 1929 crash and depression experience. The term "sucker" is first used in market investing here.

JBW's premise is sound. Cash on cash investment is real and can be measured. Reality is, wall street is not rational and the greater fool buys my position.

The book is old school and very difficult to read. Financial formulas are best suited for what this book is, a PHD paper on investing. Too bad the market participants forgot to read it.

Last I looked, 2004, cash dividends were nil. I guess stocks are overvalued. Wanna buy some???

Truly one of the most amazing finance books I have ever read
A book like this will continue to be a valuable investment for as long as there stock markets

Still relevant after sixty years
This book is still in print sixty years after it was written, despite never having been updated or revised. That testifies to its classic status, in a field, financial analysis, which generally changes rapidly.

The author defines the "Investment Value" of a stock to be the net present value of all its future dividends. This definition provides a measure of intrinsic value which is independent of stock market prices, enabling the investor to assess whether the current market price is high or low compared with the Investment Value of the stock.

A calculation of Investment Value inevitably requires estimation of factors such as future growth of earnings, the proportion of earnings that can be paid as dividends, and an appropriate discounting rate. The author does not shy away from making such estimates, and the book includes practical case studies for three current (in 1938) valuations, General Motors, United States Steel and Phoenix Insurance, as well as thr! ee retrospectives to 1930, AT&T, Consolidated Gas (Con Ed) and American and Foreign Power.

While the facts of these valuations are long ago, the methods are still applicable today. A great self discipline for investors would be to always prepare their own estimate of Investment Value before buying any stock.

The book is accessible to any general reader. A casual glance will show some apparently off putting algebra. This should be manageable to anyone who has finished high school, and arises only because in 1938 the author did not have the benefit of computer spreadsheets for doing growth projections and discounting calculations. The reader should find it straightforward to apply the author's methods with modern computing resources.

While the above comments imply a book that is worthy but dull, the book is in fact anything but dull. The author writes grippingly well, illustrated by this extract:

"Concerning [a stock's] true worth, every man will cherish his o! wn opinion; as to what price really is right, time only wil! l tell. Time will not give its answer all at once, though, but only slowly, word by word, as the years go by; nor will the last word be spoken till the corporation shall have closed its books for ever and ever. Those who bought their stock long ago will know their answer in the main by now, but those who buy now will hear theirs only in the future. "

I would commend this book to every investor or student of finance. ... Read more

Book Description

Recursive methods offer a powerful approach for characterizing and solving complicated problems in dynamic macroeconomics. Recursive Macroeconomic Theory provides both an introduction to recursive methods and advanced material, mixing tools and sample applications. The second edition contains substantial revisions to about half the original material, and extensive additional coverage appears in seven chapters new to this edition. The updated and added material covers exciting new topics that further illustrate the power and pervasiveness of recursive methods.

Significant improvements to original chapters include a better treatment of the existence of recursive equilibria, an enhanced account of the supermartingale convergence theorem, and an extended treatment of an optimal taxation problem in an economy in which there are incomplete markets. Completely new coverage in the second edition includes an introductory chapter, which gives an overview of the themes uniting the diverse topics treated throughout the book. Two new chapters offer a self-contained account of the optimal growth model and some of its basic applications in macroeconomics and public finance. Other new chapters cover such topics as how to formulate and compute Stackelberg or Ramsey plans in linear economies, sustainable risk-sharing equilibria without commitment, and the application of recursive contracts to topics in international trade. Most chapters conclude with exercises and the book includes two technical appendixes covering functional analysis and control and filtering. ... Read more

Reviews (7)

get it free
This is a great book. But you can download the second addition free on Sargent's website, so I wouldn't recommend buying it.

Perfect book
This is a perfect book for three reasons; i) it is perfect for those who wish to learn modern macroeconomics. The book develops necessary knowledge and tools to be applied to dynamic economics, ii) Sargent is one of most prominent and leading macroeconomists of the world, and he should be Nobel prize winner in Economics, iii) the book is published by MIT.

Not for beginners
When I recently left my job as cryer in a grim, north-eastern town, I was made the head of recursive macroeconomic theory at a major international bank. I could have done with a simpler introduction than this, to be honest, as my knowledge of RMT was limited. But now I hold my own in meetings simply by spouting a few long words from this book (mainly "macroeconomic" and "recursive" - theory doesn't seem to impress as much) and delegating to underlings.

Not the first book in Dynamic Macro, but excellent afterward
The first time i read the book, i'm sure this should not be the first text book for Dynamic Macroeconomics everyone should read. It's better to read somewhere else as an introduction to the idea of dynamic macroeconomics. Romer 'Advanced Macroeconomics' and Stokey, Lucas, Prescott 'Recursive Methods' are more appropriate to start. After gainning some similarity with Dynamic Methods, it would be much better to study models about macroeconomics presented in the book.

This book is the presentations of various models using Dynamic / Recursive Macroeconomics. It makes them easier and time-saving to study many kinds of model in a semester. It's GOOD & HELPFUL IN THIS SENSE. However, it might not be a good book for study in depth. You are better to study from the original papers for the same topics.

I think, this book is similar to Tirole 'Theory of Industrial Organization' in spirit, but different in content. They both show the simplified version of various models in the fields.

If you think you like this style, you would like to have it. But if you don't, it might be better just to skim (from the library) and read the original papers.

Hope this comment would be helpful for you to make a decision :)

a review from a skeptical student, now a convert.
This text is perhaps the most accessible introduction to modern macroeconomics available. What I feel to be the greatest contributions of the text are the problems-- in each chapter, they start from the basics and build upon one another until you are formulating elaborate models that are the basis for much of the current discourse in the literature. The approaches used are so powerful and the questions tackled so varied that you cannot help believing that the recursive method is the future, not only for traditional issues in macroeconomics, but throughout the discipline. Hey, the book stands out so much, I decided to write a review! ... Read more

Book Description

No book has done more to instruct, enlighten, and inform conservatives about economics than Adam Smith's undisputed classic. ... Read more

Reviews (45)

The only great seminal work I found lucid and persuasive
When I was twenty I set out to read the seminal works of a wide range of disciplines. I read Darwin, Newton, Einstein, Hobbes, Machiavelli, Plato, Aristotle, Levi-Strauss, Jung, Campbell, Freud, Frazer (abridged), Epictetus, Keynes, Adam Smith, and others I can't remember. In most cases I was disappointed. I realised that in many cases the first exposition of an idea is difficult and obscure, and that it is the later, summarising writers who collect the best and clearest explanations of profound thoughts.

The exception was Adam Smith's 'Wealth of Nations'. Only later did I discover that he began his amazingly varied academic career as a teacher of English prose style. It came as no surprise.

Smith's writing is a brilliant as Gibbon, but even more lucid. His insight is profound. And his marvellous style of explanation makes the reader feel like a genius. Somewhat to my astonishment, the only part of his argument that I found at all difficult was the section on international exchange, which I had to translate from terms of flow of specie to terms of exchange rates of fiat currencies. Of all that stuff I read that year, Smith's 'Wealth of Nations' was the clearest, most persuasive, and most inspiring.

It is because of Smith that the next year I took up the study of economics at the Australian National University. I came first in my class: my prize? A copy of 'The Wealth of Nations', much appreciated.

Adam Smith A Brave Man
In his day monarchies, emerging democracies, business people and government employees were profoundly inept in the affairs of economics, trade and taxation. We have come a long way. Now governments are simply inept including the USA government. When you compare the errors in governmental affairs that he reviewed more than two hundred years ago to the mistakes and wrong governmental policies of today there is considerable reason for optimism.

What a damning review of governmental affairs he wrote. This is the predominant reason for reading this book. Secondarily, to trace the development of economic thought. Adam Smith was one of the greatest pioneers in the science of economics. There are areas where we now know he was in error. Science content of modern economics is more profound than most observers are willing to admit. If you just want to learn about economics you would be well served to first read more current economists. In modern times, Milton Friedman has played a similar role. Again there is that radical urgency to place Friedman in the conservative pile before they decide the correctness of his thought. The legacy of critically reviewing the errors of democratic governments as well as repressive governments will hopefully be kept alive and well. Much is left to be done-- even in the USA. A very exciting question remains what happens when the repressive leaders of China realize that good economic policy and political freedom are so deeply intertwined that there repression is truly doomed. Will the end be destructive or positive. It is surely coming.

Similarly in the USA and other developed nations, as more people learn economics on the path to greater involvement in business, investing and entrepreneurship one would expect increasing rebellion against the reckless of policies by politicians and the uninformed contentions of the media. There are many helpful books some I have recently reviewed that can broaden ones understanding of governmental failings in economic policy.

While everybody would benefit from more knowledge about economics, the basic shortcomings of the media and politicians is of critical concern. It is no surprise that reviewers of economics related books have to rush to place any book either in the conservative pile or the liberal pile. Why or how one decides to place Adam Smith in the conservative pile, is surely the sickness of political views over logic. While it is unfortunate that the Great Minds Series does not disclose that this is an abridged edition, most readers will find this is more than enough to read.

Wealth is the product of labor
I appreciate that for most readers, Adam Smith's Wealth of Nations is going to be a deadly dull read, although I think this is a pity. With a little discipline, I think that the erudite reader will take away many enriching (yes, pun intended) lessons from Smith's ground breaking treatise. For me, as a business professional and business student (I have an MBA), the Wealth of Nations was a Damascus Road experience.

I think there are several myths about economics that are exploded by a first hand reading of Wealth of Nations. Many supply side economists eagerly tout Smith's "invisible hand" metaphor in advocating deregulated markets, but in my view, Smith took a balanced and integrated approach in analyzing the supply and demand sides of national economy. In the first chapter Smith notes that national wealth is the production of labor. This has dual implications in that production is the creation of supply, but the labor force consumes that supply by trading the resulting wealth. These are two sides to the same coin, & therefore indivisible. Also in the first chapter, Smith notes that increasingly sophisticated economies will employ a division of labor to increase production efficiency, which is another concept that necessarily integrates supply and demand, production and consumption.

Smith devotes quite a bit of time lamenting governmental intrusion into economics by way of regulation. However, he does not condemn government regulation per se, but make very specific criticisms against those state regulatory polices that tend to create monopolies. None of his comments are strictly political in nature. Smith's analysis is purely based on economics & the efficient allocation of capital. He views the enemy not as the King's ministers, but rather the monopolies that were so prevalent during the 18th century mercantile system.

On a related note, I think it is clear that Smith would be horrified by the military centric nature of many post-industrial economies today. He notes that a standing army is a drain on national wealth. Essentially the state is paying workers not to work, but rather to stand ready to fight. I suspect that Smith would view large state defense budgets as being most closely akin to a transfer payment made by a welfare state. For those who will scream invective at me for saying this, please remember that the largest item on any defense budget by far, is payroll.

Finally, as an amateur historian, I enjoyed the brief glimpse into what life was like in the 18th century Empire from an economist's perspective. Various parts of his book review social welfare systems of his day, as well as international banking, political economy, agrarian systems, and life in general.

ebook: Hope you don't need it right away! AMAZON SLOW!
The book is a classic and needs no review from me. However, if you thought that you could download the book from Amazon.com quickly, you will probably be sadly mistaken. I've been waiting 30 minutes so far and still my order is "being processed". No other eBook site on the internet takes more than a few seconds after entering your credit card. If you need this or any ebook in a hurry. Take a look at the other sites out there. Evidently, Amazon understands the package sending business a lot better than they do the electronic media download business!

Still an amazing accomplishment
I really wonder how many people have ever read this book--especially those who deal with economic issues (say Congress or the President). Of course, some of the ideas have become dated because the world of 2004 isn't the world of 1776. However, what's amazing is what has held. So much of this book is still basic economic theory. Plus, its not as if Smith had predecessors who he could follow. Smith is one of those people who will still be remember in 2500 or 3000 and deservedly so. ... Read more

Book Description

A pillar of the Austrian School Library and the last full-blown treatise on economics. If Mises's Human Action was the culmination of the School from Menger's time, Rothbard's treatise takes Austrian thought even further in the areas of utility and welfare economics, antitrust, labor, taxation, public goods, and social insurance schemes. Inconsistencies are ironed out and the system of thought, in all its logical rigor, is unbroken.

More than any book, Man, Economy, and State taught economics to the post-Mises generation. It refutes still-common errors among the mainstream and grapples with the post-war Keynesian literature point by point. The impact of this work was also enhanced by its breathtaking logic and clarity, even in the most difficult subject areas.

Special insights along the way include a full critique of government statistics and the Fed's definitions of the money supply. Nearly twenty-five years after it first appeared in print, it remains the standard bearer for the Austrian School. ... Read more

Reviews (14)

One of the two greatest works on ec onomics.
This monumental follow-up to Ludwig Von Mises's "Human Action" continues the ground-breaking path set by Mises in that work. Rothbard's treatise is written more in the style of an economics textbook. Most of the book is an expansion of the economic principles that Mises's expounded in "Human Action." Rothbard's brilliant defense of a natural monopoly (as opposed to a government-created one) is alone worth the price of the book. But neither work is for the beginner. It is best to read Carl Menger's "Principles of Economics" first, before attempting to tackle either book.

A refreshing antidote to mainstream Micro and Macro
Man, Economy and State is more than a refined rehashing of Mises' Human Action. It includes thorough analyses of many topics Mises did not tackle, or did not tackle so well. Most notably, Rothbard exposes the logical absurdities embedded in Keynesian and monetarist theories.

I found the work both more satisfying and more intellectually invigorating than I expected. Rothbard's clear, deductive prose, aided with just a touch of humor and sarcasm, makes for some wonderful reading. I know I will read this one many, many times before I feel I have really absorbed everything this book has to offer.

I especially urge educated laymen and students of economics to give this book a good reading before mindlessly accepting the trendy mathematical scribbling that has become the code language of ivy-league economists. Purposive, motivated individual ACTION is the ultimate cause of all economic phenomena. Therefore, economics must be described in terms of cause and effect relationships originating in the attempts of individuals to employ scarce means to satisfy unlimited wants.

Economics, when described through functional equations, can never contain any meaningful insights that could not be expressed more precisely through verbal logic, as functional relationships lack information on causality. In the social sciences they are likely to be the source of false deduction and inference. The result is a hopelessly confused pseudo-science that ignores most of what makes economics useful.

Because Rothbard understands this from the get-go, he is able to give us 900 pages of meaningful logic.

Thank you, Murray Rothbard!

The Best Treatise on Economics ever written...
This is simply the best treatise on economics that has been written upto date in the human history. Ludwig Von Mises 'Human Action' comes close but it is too dense for a layman.

This book: Man, Economy and State, written by Murray N. Rothbard can make an economist out of layman if he puts time and efforts into reading this book and understanding all its concepts. Murray Rothbard starts with the basic axiom that: Humans Act. He further states that Humans Act to relieve some sort of unease and approach a better state of satisfaction. Based on these two axioms he builds up the entire edifice of Economics using impeccable logic and superb reasoning.

I had read Carl Menger's 'Principles of Economics' before this and thus had a basic understanding of economics. But EVEN if you do not have that, do not worry. This book starts with very basic terms and explains the concepts of Supply and Demand, Interest Rates, Profit/Loss, Production Structure etc. in a clear and thorough manner.

Murray Rothbard furthermore refutes the Socialist, Keynesian(gradual socialist) and neo-classical schools of economics. His elucidation of fallacies of Interventionist economics is so logical that one cannot help but laugh out loud on the stupidity of fools like John Keynes, Karl Marx and their disciples.

Also you will not see much mathematics in this book. Subjective valuations of goods/services by humans cannot be quantified. This seems pretty logical to most of us but many who call themselves "economists" simply miss this insight.

Read this book and you will have a far better understanding of how the world works. You will also understand economics better than most economics college professors and government-employed economists.

A Masterful Treatise
This is easily one of the three best defenses of the Free Market ever written. (The other two being Mises' "Human Action" and Reisman's "Capitalism" . "Power and Market" doesn't count because it must be read with MES.)

Rothbard's opus will teach you about the ethics of a free, nonviolent society, and how this society will prosper. It also does a good job of demolishing the concept interpersonal utility comparisons, which will be a great thorn in the side of those who advocate "welfare" spending. It also shows that, unlike most followers of Marx unquestioningly accept, the capitalist is productive.

Brilliant
Others here have done a great job of reviewing this book, so I won't say much.
I have to give it 5 stars.
I'll just say that a lot of people don't realize how critical a proper understanding of economics is to understanding many political issues. Taxes, minimum wage laws, unions, monetary policy, welfare, subsidies, protectionism, the list goes on. Yet most people do not know square one about economics, which is a shame. If you want to know, this book will teach you in a clear, understandable way. ... Read more

Book Description

This paperback edition of The Coming Generational Storm has been revised and updated and includes a new foreword by the authors.

In 2030, as 77 million baby boomers hobble into old age, walkers will outnumber strollers; there will be twice as many retirees as there are today but only 18 percent more workers. How will Social Security and Medicare function with fewer working taxpayers to support these programs? According to Laurence Kotlikoff and Scott Burns, if our government continues on the course it has set, we'll see skyrocketing tax rates, drastically lower retirement and health benefits, high inflation, a rapidly depreciating dollar, unemployment, and political instability. The government has lost its compass, say Kotlikoff and Burns, and the Bush administration's spending and tax policies have charted a course straight into the coming generational storm.

Kotlikoff and Burns take us on a guided tour of our generational imbalance: There's the "fiscal child abuse" that will double the taxes paid by the next generation. There's also the "deficit delusion" of the under-reported national debt. And none of this, they say, will be solved by any of the popularly touted remedies: cutting taxes, technological progress, immigration, foreign investment, or the elimination of wasteful government spending. Kotlikoff and Burns propose bold new policies, including meaningful reforms of Social Security and Medicare, that are simple, straightforward, and geared to attract support from both political parties. ... Read more

Reviews (24)

Good on an usolveable problem
According to official numbers, the present value of future deficits on the federal budget is somewhere like USD 50 trillion, or five times annual GDP. That might sound like to much to be true, but it is. The effect of low fertility in the 30s, super high in the 40s and 50s and declining thereafter, combined with rising expecting living ages, will be that in 25 years from now, the number of retirees in America will double. This book is about some of the consequences this will have on the federal budgets, and what you as a taxpayer should do to meet it.

The economics professor Larry Kotlikoff and journalist Scott Burns are discussing the one of the most important forces that will change the Western societies during the next 50 years: the tidal wave of retired persons. They are pointing to a lot of proposed fixes which wont work: rapid productivity growth (drives up liabilities as well), selling assets (pensions are streaming) and capital deepening (capital is going to young nations) among others. They also say that delayed pension age isn't going to work either because it will lead to less private savings. Most experts in most countries, including governments, are relying mostly on delaying pension age, a measure that most surely is going to be implemented and work.

The biggest flaw of the book is not addressing the difference between Medicare, which is far from balanced, and Social Security, which is close. Straight out advertisement for their own personal finance software is no quality mark either.

The best parts of the book are the financial tips at the end: how should future retirees prepare themselves. The authors take it almost for granted that we will see a surge in inflation, and a serious upbeat in tax rates. Printing money without raising Social Security benefits will in the end prove to be the most convenient way to solve the fiscal problem, but the taxes will still need a hike. For the latter, Kotlikoff and Burns suggest that you get taxed every income that are taxable, sooner rather than later. For the former: buy a house.

We need to wake up
This book outlines, with well-researched facts, the reality facing the US in the future.If we do not act now, our children, and all of us who will live beyond the next two decades, will be forced to live seriously reduced lifestyles.Indeed, we are currently borrowing against the future at such a rate that our children could be trapped into what can only be called indentured servitude:They will be paying enormous taxes with seriously reduced services.The burden will be much for them to bear, and lead to economic and political instablity.

This is a must read for anyone interested in the truth of the future of the United States.

Jeremiad product peddling
It's unfortunate that Kotlikoff and Burns feel the need to generate such an alarmist diatribe to promote their ESP software package (something they suggest you might need to weather the coming generational storm). These sorts of jeremiad works can be very damaging, especially since our economic future is so inextricably tied to market perception.

While they have a solid point about the aging (for some strange reason these Americans prefer to use the pretentious spelling "ageing") population, they are incredibly irresponsbile in their discussions about population. One would almost infer that they would welcome significant increases in the birth rate(at least for Western countries), to stimulate the economy and generate workforce support for our growing elderly populaiton. Anyone aware of the recent predicitons released by the UN, knows that (barring unpredictable disasters) the world population is expected to be 9.1B by 2050, something that the authors should have addressed.

It is also unfortunate that these authors feel sufficiently insecure that they have a need to insult practically every other economist or politician that they reference (in a tacky and uncreative way). It certainly cheapens their message. Mr. Kotlikoff is obviously very fond of Mr. Kotlikoff.

I recommend that anyone interested in reading this book also read Paul Krugman's informative review; http://www.nybooks.com/articles/17771.

The Sky Is Falling!
What an astounding example of literary rubbish to complement the current oh-my-god-ss-is-going-to-run-out cries from chicken little, AKA, the warrior! no the peace! no, the warrior! pRe$ident and his monied minion$ in Congre$$.The writers of this crap perform great feats of mental gynastics to place blame entirely at the feet of entitlement programs.What an astonishing coincidence we have here...the very *same* programs that have helped keep the heads above water of those of us who *aren't* trust fund babies are the very same programs the trust fund baby/leaders now want to dismantle.What they haven't gone to great lengths to explain however is to point out that the entire American economy is predicated on consumer debt and we are Ownd by Chinese and Japanese banks who keep subsizing our debt so we can continue to afford their cheap crap.Don't waste your time reading this book.All you have to do to spare your eyes is switch on the TV and tune into Fox News, the official Pravda channel of the United States of, by and for the corporate fascists of America.

Good Book, Kind of Sad
"The Coming Generational Storm: What You Need to Know about America's Economic Future" by Laurence J. Kotlikoff and Scott Burns discusses the financial crisis Americans face due to the combined aging of America and generously-promised, but economically-unrealistic, Social Security and Medicare benefits.

We learn that two-thirds of older Americans get over half of their income from Social Security. Nearly 40% of poorer, older Americans get essentially all of their income from Social Security. The authors calculate the value received by an older American from Social Security is approximately equivalent to a portfolio worth about $600,000.

Further, the benefits provided by Medicare significantly exceed the value of Social Security to elderly America. Reduced Social Security and Medicare benefits would financially hurt most older Americans, especially poorer Americans.

However, Kotlikoff and Burns point out the level of promised future benefits is unfundable. According to the economists who created the Federal 2004 budget, America faces a fiscal gap of $51 trillion (the gap was $45 trillion before the Medicare prescription drug benefit.), or about $159,000 per American. The bulk of this liability is promised Medicare benefits. We can compare this to the current federal debt of $4 trillion, or about $14,300 per American.

According to the authors, to cover these promised liabilities, we'd need to raise taxes by 69%, if we hope to keep tax rates constant for further generations. Otherwise, future tax rates will need to increase by more than double for future generations. These conclusions were in the Federal Budget for 2004 (until they were removed).

Kotlikoff and Burns tell us President Bush felt these facts might dampen support for his third round of tax cuts, so this information was deleted before the 2004 budget was widely distributed and posted on whitehouse.gov (Page 67). Of course, tax cuts only add to the problem.

This brings us to the crux of the problem. If Americans made significant sacrifices now (lower benefits, increased taxes) the problem could be made manageable. However, the authors say politicians don't want to tell Americans the truth and deal with the problem. Instead, they want to make Americans believe there isn't a problem, because it helps get them elected and serves their personal interests.

Politicians are putting their own well-being above that of America and future generations will suffer because of it.
Because our political leaders won't deal with the problem we are facing "The Coming Generational Storm." While much of the book is insightful, the chapter that most interested me was "Securing Your Future" which offered some practical advice for how individuals can deal with the situation.

Kotlikoff and Burns make several basic predictions. First, eventually, tax rates will need to go up. A lot. Second, Social Security and Medicare benefits will need to be cut. A lot. Third, before this happens, America will face tremendous economic stress when the government starts printing more money to pretend the liabilities are manageable.

America is fortunate because the U.S. dollar is the world's currency. The authors argue foreign investors will be less willing to hold dollars when the U.S. currency faces devaluation. (We've already seen a significant shift in the value of the U.S. dollar relative to the euro. This is attributed to foreign investors lacking faith in America's fiscal policy.)

The authors suggest individuals hold a small percentage of their investment portfolios in non-U.S.-dollar-denominated investments. For example, they mention EverBank.com as a source of foreign certificates of deposit. So, you can hold euros or Chinese yuan, if the U.S. dollar goes kaput. They suggest considering international bond funds which don't hedge currency risk, and, of course, international equity funds (Vanguard International Total Stock Market), precious metal funds, commodity funds (T. Row Price New Era) and health care funds (Vanguard Healthcare fund).

Kotlikoff and Burns point out that it's important to keep your investment costs low, by favoring index funds or low management expense funds. Portfolio survival is discussed. This is an area made better known to the public by Scott Burns, who is a financial columnist (ScottBurns.com). In particular, if you sell shares from a portfolio that drops in value, you might wind up selling so many shares during a down market that you destroy your portfolio.

The authors also suggest you consider your "health capital." In other words stay healthy, because you won't be able to afford aging otherwise! (They also mention the contrarian position: "Live hard. Die young.") Sites like livingto100.com can help us estimate our life expectancy.

Kotlikoff and Burns say we should reevaluating 401(k) contributions. They argue with future tax rates likely higher and with extra taxation of Social Security benefits with rising income during old age, 401(k)s can lead to paying higher taxes in the future.

However, I'd argue many upper income earners would rather have $1 million to $2 million in a 401(k) rather than worry that they might have their Social Security taxed, because they have too much income during retirement! In other words, when you do your financial planning, you might consider the effects of your decisions on your Social Security or you might just proceed as many semi-affluent and affluent do--assume no Social Security at all. If you get it, great. But, don't readjust your plans because of Social Security. (You probably could maximize your estimated Social Security in the future by having no other future income. Not the best plan!)

Of course, the argument of using low-cost index funds outside of tax-deferred retirement accounts also makes a certain sense, especially with current tax rates.

Overall, I thought "The Coming Generational Storm: What You Need to Know about America's Economic Future" was a great read.
... Read more

Book Description

The scientific study of complex systems has transformed a wide range of disciplines in recent years, enabling researchers in both the natural and social sciences to model and predict phenomena as diverse as earthquakes, global warming, demographic patterns, financial crises, and the failure of materials. In this book, Didier Sornette boldly applies his varied experience in these areas to propose a simple, powerful, and general theory of how, why, and when stock markets crash.

Most attempts to explain market failures seek to pinpoint triggering mechanisms that occur hours, days, or weeks before the collapse. Sornette proposes a radically different view: the underlying cause can be sought months and even years before the abrupt, catastrophic event in the build-up of cooperative speculation, which often translates into an accelerating rise of the market price, otherwise known as a "bubble." Anchoring his sophisticated, step-by-step analysis in leading-edge physical and statistical modeling techniques, he unearths remarkable insights and some predictions--among them, that the "end of the growth era" will occur around 2050.

Sornette probes major historical precedents, from the decades-long "tulip mania" in the Netherlands that wilted suddenly in 1637 to the South Sea Bubble that ended with the first huge market crash in England in 1720, to the Great Crash of October 1929 and Black Monday in 1987, to cite just a few. He concludes that most explanations other than cooperative self-organization fail to account for the subtle bubbles by which the markets lay the groundwork for catastrophe.

Any investor or investment professional who seeks a genuine understanding of looming financial disasters should read this book. Physicists, geologists, biologists, economists, and others will welcome Why Stock Markets Crash as a highly original "scientific tale," as Sornette aptly puts it, of the exciting and sometimes fearsome--but no longer quite so unfathomable--world of stock markets.

... Read more

Reviews (20)

Bring your college economics professor along.
WOW! What I thought would be an indepth examination of markets and how and why they fluctuate was...but that's the simplistic version of it. This is, by far, the most complex and detailed account of stock market behavior I think in existence. Whether that's good or bad is entirely up to the individual reader to decide.

It is heavy on the mathmatical end of it, so bringing along your left brain with this book is a must. I found it too confusing in trying to make the formulas fit with what the text was trying to tell me. In short, I got so lost I had to reread several points, which detracted from the overall experience of learning. It's excrutiatingly detailed, to say the least. This isn't a bad thing, but definitely not my preference.

If you are highly skilled with formulas or have a LOT of time to kill reading a book, I recommend this. Otherwise...just drop your econ professor an email.

An Engaging and Thought-Provoking Work
If you love to read works on economics, math and physics and love to assemble models of the world, I cannot recommend this book highly enough. Indeed, if economic models were this much fun when I was an undergraduate, I might have become an economist.

Funny thing though, this was not written by an economist, but by a geophysicist.
It seems physicists and psychologists in particular are writing more interesting economics books these days than economists themselves.

The core focus of the book is a derivation of a market model that includes value investors, momentum investors and the herding effect of individual economic agents acting in a world of partial information. The final model is stunning.

Sornette points out the main problem with predicting bubbles: even if all the signs say "yes," there is still a pretty good chance that the bubble will be self-correcting. Turns out chasing market bubbles is a little like chasing soap bubbles - they may simply disappear at any moment. Thus, the book and the model are of limited use in any type of market timing. Indeed, the model suggests that the market should now be in the tank, and yet it continues to hover on the higher side of its expected range.

As much as I loved the book, there was a slight aftertaste that this was all nothing but a very mathematical and high-minded type of technical analysis. That at base, when all was said and done, this was not all that different from the various "tools" in the chartist's handbook, e.g. MACD, RSI and OBV, etc., etc., etc. The difference may be solely that Sornette knows his statistics and would easily and readily dismiss any model which did not perform significantly different from chance.

Finally, this book will have you trotting out your old high school calculus book. It brought back memories of just how much fun mathematics can be.

All in all - I give it 5 stars.

Insightful!
The word crash strikes fear into any investor's heart. Fear not, writes scientist Didier Sornette, who has crunched the numbers (not to mention the probabilities and log periodicities) and has determined that crashes are, in fact, quite normal and predictable. If prices are soaring and everyone you know says profits are guaranteed, get ready. Sornette backs up his argument with countless charts, formulas and phrases such as "spontaneous symmetry-breaking regime." Still, there's enough plain English here to enlighten the lay reader. We suggest this book to traders and investors looking for a unique analysis of market crashes.

More than it first appears.
This is poorly edited, poorly focussed, and inadequately titled. It discusses the behavior of complex systems containing intelligent operators between cusps. Things like the human biosphere -- as well as financial markets. I would hope for a second edition suitable as a required text for upper-division students of demographics, international relations, ecology, anthropology and the like as well as the economics and finance majors its title seems pointed to.
Read Chapter 10 first. It is the most important. Then you can read the rest.

Best Explanation Yet
Of all of the books that I have read about the market (and I have read a bunch), this book provides the most compelling explanation for unusual or rare events. I am a self admitted mathamatical dunce, but even for someone that has never taken a calculus class, I could understand the underlying message of this book. The math is much too complicated for me to understand, but fortunately the style of writing the author uses allows readers like me to get around the math and to the point. ... Read more

Book Description

"A superb volume on the new economics of geography by three pioneers in the field. This lucid, elegant book is a must for any graduate course in urban economics." -- Edward L. Glaeser, Professor of Economics, Harvard University

Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy--that is, where economic activity occurs and why. Using new tools--in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth--this "new economic geography" has emerged as one of the most exciting areas of contemporary economics.

The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales. ... Read more

Reviews (1)

A pretty good textbook with material not found elsewhere
If you are considering buying this book, you will probably want to do so. If you are interested in applying regional analysis or the "new" spatial economics that they present, you will have a good starting point. The necessary background is probably be a year of Ph.D. level economic theory. Specific high points are the exposition of the Dixit-Stiglitz model of monopolistic competition and the evolution of urban systems. All new Ph.D. students will have a use for chapter 4, which is an easy-to-read discussion of monopolistic competition. Further, the book is rigorous enough to be used in academic work. I recommend it to anyone interested in regional or urban economics. It is useful to students and practicing economists alike. Its rigor makes it academic, but its ease of exposition makes it useful for those without extraordinary math backgrounds. Compared to similar books, you get a lot of value for the price. ... Read more

Amazon.com

Conventional wisdom has it that John Kenneth Galbraith's The Affluent Society spawned the neoliberalism we see in Bill Clinton, Tony Blair, and other world leaders. The economist's prose, lofty but still easily manageable, laid down the gauntlet for the post-cold war class struggle that was still far in the future in 1958. Galbraith saw the widening gap between the richest and the poorest as an emergent threat to economic stability, and proposed significant investment in parks, transportation, education, and other public amenities--what we now call infrastructure--to ameliorate these differences and postpone depression and revolution indefinitely. Widely criticized by conservatives and libertarians wary of public expenditures or increased government influence, Galbraith still influences liberal and neoliberal thinking. He has acknowledged that his work, like that of most social scientists, contains flaws (like his dire prediction of an out-of-control unemployment and inflation spiral that petered out in the 1980's), but much of it remains fresh and true even today. Four years beforeSilent Spring, he wrote about the consumerist blight that threatened our wild lands equally as much as our cities; his hoped-for increase in environmental awareness has grown significantly in recent years. Whether you support the political implementations of his views, experiencing his writing is important to put those views in context.More than this, though, it is an honest pleasure to read such original ideas so well expressed. --Rob Lightner ... Read more

Reviews (14)

Affluent Society was a partly factual and interesting book.
The Affluent Society was a term to describe the United States after World War II. An Affluent Society is rich in private resources but poor in public ones because of a misplaced priority on increasing production in the private sector. John Kenneth Galbraith argued that the U.S. should shift resources to improve schools, the infrastructure, recreational resources, and social services providing a better standard of life instead of mor and more consumer goods. The term is now used to indicate prosperity, wide spread I shouldn't tell you any more or it would spoil your experience when you read it. It was a great book. John Galbraith game some great opinions which he truly believed in. I would reccomend this book to anyone who is into American history.

Thought Provoking, Well Written Leftist Economics
Galbraith's book is certainly thought-provoking & worth reading. His arguments are well thought out, and his writing is wryly witty. Even if you disagree with his views, as many have, it's worth a read.

Galbraith starts the book off by reviewing how many early economic ideas were created in periods of scarcity, and that the notion of scarcity may not appropriate for today's age of mass affluence. Those with vested interests in production (i.e. large businesses) still cling to the "conventional wisdom" that increased production equals progress, even though goods are now abundant and our basic material needs have been satisfied. To stimulate further demand, corporations must resort to salesmanship and advertising. If advertising stopped, demand would fall, production would drop, and unemployment would rise; thus, business continue to focus on increasing production to ensure their own survival.

There are other threats to production. Economic cycles may result in a depression. Poorly managed firms may have to lay off workers. As a result, people -- and especially politicians --focus on economic growth to avoid these insecurities. Growth is something that both the rich and poor will vote for, since they both want to keep their jobs and acquire more goods. Growing out of a recession also seems promising. The net result is that society as a whole focuses on increasing production by private industry.

Next, Galbraith shifts his view from private industry to the public sector. He does this by introducing the idea of social balance, which asserts that as private spending increases, public spending should increase to match. For example, if factories build more cars, more money needs to be invested in public roads. Unfortunately, private goods are sold via advertising by companies that can react quickly to changes in demand. In contrast, public investment by governments reacts much more slowly, and typically lags private spending and investment, due to regulations, bureaucracy, and voter's general aversion to new taxes. The result is a world rich in private goods but poor in public ones: beautiful cars driving on poor roads, well-dressed kids in the crumbling public school, neighborhoods with beautiful homes but polluted parks.

So what to do? Galbraith's proposed solution is that we should invest in our economic infrastructure: our parks, our roads, our educational system, long-term scientific research, police, and the like. To fund this, he emphasizes sales taxes, which reduce consumption, and make those who consume a lot pay for it. To alleviate poverty and inequality, Galbraith also proposes to expand unemployment insurance so that one could choose not to work, yet still be able to get by. In his view, this would allow more people to reduce their work week, or not work at all, or to be able to focus on work they really enjoy.

Although this is certainly a liberal view & may not be feasible, his views certainly were eye-opening and thought provoking. For that reason, I recommend the book.

An outdated and wrong book
The Affluent Society is no longer relevant to contemporary economics. It was written in 1958, when the world was mired in the Cold War. Not only is this book irrelevant, it is also elitist and arrogant. Galbraith says that people who belied Karl Marx were inherently more intelligent. I think it is about time to stop calling an irrelevant book a classic.

A book all students of economics should read.
If you agree with Galbraith's notions on economics you may find this a seminal work. If you disagree with him you will no where find a better spar for your own ideas. (Friedman spent an entire book analyzing Galbraith) Love it or hate it The Affluent Society looms large in American economic thought of the 20th century. The book itself is dedicated primarily to re-assessing the role of production in an economy of increasing affluence. Economics long ago acquired the unhappy designation as "the dismal science." This was derived from the observation by all famous early economists that economic life for the masses was inevitably harsh. Ricardo, Smith, and Marx all agreed that while a minority might enjoy abundance the majority were doomed to struggle for their very economic survival. As early as the 1950s Galbraith made the very simple point that the economic prospects of the masses are no longer dark. The average worker could (and still does) expect reasonable wages, a constant supply of luxury goods, and free time to enjoy these things. The modern economy is no longer a battle for simple survival but rather one over what an individual's share of excess production should be. Some reviewers have commented that the specifics in The Affluent Society have become dated. Indeed automotive tail-fins are no longer the common automotive add-on they once were, but the underlying questions remain valid. In the economy of 150 years ago to claim that suffering was inevitable seemed fair, for it was the state of the masses. In the economy of the present where economic deprivation is no longer the norm, to claim some must suffer while the majority live in relative affluence suddenly appears cruel.
A social scientist who argued the changes of the last 200 years were not relevant to analysis would be laughed at in any other field. Unequivocably our economic priorities have changed during that time. The Affluent Society provides a history of that change, a look at how our failure to adapt has led to a number of social problems, and suggests how we might better organize economic priorities in the present. It is no small acheivement.

Interesting case study of a Canadian in America
The Affluent Society is probably not read anymore, and for good reason, because it doesn't have a great deal to say today. It is an "intervention," as the leftists like to say, and it doesn't translate very well to very different circumstances. Just for that reason, it is a snapshot of a particularly interesting time, the late 50's, in American history. What is most interesting about the book is the aristocratic disdain he holds for large gas grills, tail fins, televisions, and advertising. The idea that growth is not organic or spontaneous but generated by advertising--the book was written at about the same time as Vance Packard was big--is repugnant to Galbraith. How frivolous! Or even worse, how trivial. Because Galbraith was part of the strategic air command and was involved in the bombing of cities in WWII, he was intimately familiar with the consequences of that campaign, and he tells a story about how production actually increased after the bombing because all the people engaged in services, like waiters and housecleaners and barbers, went into production after the city had been destroyed. (Albert Speer, who organized that production, recalls meeting his American counterpart after the war and being very impressed with his professionalism. Speer and Galbraith are very similar, no the least in their relationships with charismatic leaders.) Galbraith does not argue, as one would expect, that quality of life is largely divorced from "production"--he is all for production, so long as it involves food, housing, steel, and other essentials. What he notes, instead, is that life went on as before after all the superfluities were stripped away. If only the masses were not so stupid! If only we could maintain a war economy after the war is over: that is the implicit message of the book (and of course Galbraith would be in charge). The idea that all those factories that once produced beautiful bombers would now be producing chrome by the ton was deeply offensive to sense both of discretion--wealth is not for display--and technocratic utility: production should serve a purpose, whether it be fighting Hitler or fighting poverty. Galbraith is also a spectacularly good writer. ... Read more

Book Description

Richard Thaler challenges the received economic wisdom by revealing many of the paradoxes that abound even in the most painstakingly constructed transactions. He presents literate, challenging, and often funny examples of such anomalies as why the winners at auctions are often the real losers--they pay too much and suffer the "winner's curse"--why gamblers bet on long shots at the end of a losing day, why shoppers will save on one appliance only to pass up the identical savings on another, and why sports fans who wouldn't pay more than $200 for a Super Bowl ticket wouldn't sell one they own for less than $400. He also demonstrates that markets do not always operate with the traplike efficiency we impute to them. ... Read more

Reviews (12)

by an economist, for an economist
as an amateur economist grown increasingly dissatisfied w/ the failures of available theories, i was hopeful that this book would expound more on why markets fail. in some ways it did (in a very drab and boring language), although its coverage of financial markets (my interest) was all too brief and incomplete---the coverage of losers' outperformance of winners in equities was by far (IMHO) the best section of the book, but as good as that section was, the coverage of foreign exchange fluctuations was a failure. ---soros did a much better job of this.

there is some good material in this book, and i would give it 3 stars as a result, but the writing style makes it simply too inaccessible for the average reader. better financial market focus can be found in "reminisces of a stock operator" and "alchemy of finance", which really were accidental breakthroughs in behavioral finance (particularly the former--a gem of a book).

rhyno

How to make money in a pub?
How rational are human beings or how close to the economic models do they act? This book is a collection of articles by Professor Thaler which shows that we quite usually don't behave like theory predicts. Thaler's extensive research (the references are 30 pages long) gives The Winner's Curse a great academic foundation, but its maths that can be skipped and easy language makes the book acessible - and enjoyable - for every one that is just interested in Economics. To sum up, if you are studying or working with Economics, you should read this book. It will help you to be skeptical about the theory - just like every scientist should be. If you are reading it just by curiosity, it will enhance your skills when your are talking about the economy at a local pub. Actually, The Winner's Curse teaches you how to make money even in a pub. It worths the money. It's an excellent book.

Intriguing for the academic mind
Most anyone will find this discussion of Thaler's (and his colleagues) work enough to whet their appetite for more on the subject. It is only a matter of time before you will find yourself digging up the academic papers behind the discussions. My only complaint: the supporting books by Kahneman and Tversky are expensive!

Approach Only With Game Theory Background
"The Winner's Curse" is a collection of academic articles Richard Thaler wrote for academic literature. And while Thaler thinks like a good economist, unfortunately, he writes like a good economist (that is, badly). This is a helpful book if you are interested in a rigorous mathematical treatment of economic anomalies and have a more than cursory understanding of game theory. If not, check out "Inevitable Illusions: How Mistakes of Reason Rule Our Minds" instead.

A waste of good topics with bad writing/story telling skills
I agree that the topics covered by the author are interesting, like the Winner's Curse which is the title of the book (that the successful bidder often loses in the end), and many other facts of life (why sports fans who wouldnt pay more than $200 for a Super Bowl ticket wouldnt sell one they own for less than $400)that cannot be explained satisfactorily by traditional economic theories built on the rationality of humans in their decision making process (Without prejudice, many economists call these anomalies and/or paradoxes instead of attempting to make their own theories work/look better).

Though I did not expect the author to give me a practical solution or unique perspective to every single topic, I did expect him to give me an elaborated and organised analysis which enhances my critical thinking (or even earning power). However, only plain, boring and factual descriptions were given, a further aesthetic drawback to the already low utiltarian value of the book (I cant earn/save more nor become more knowledgeable after reading it). Perhaps I had been very wrong to compare it with the work of Paul Krugman. (After all, our economists suppose me to make a rational judgement of making the highest value of my money, dont they?

p.s. Luckily most of the professors did not include this book in their MBA courses (I took it several years ago) as suggested by some reviewers here. They did put in something better, though I forget the titles of those books which did also cover paradoxes and anomalies. ... Read more

Book Description

Credit risk is today one of the most intensely studied topics in quantitative finance. This book provides an introduction and overview for readers who seek an up-to-date reference to the central problems of the field and to the tools currently used to analyze them. The book is aimed at researchers and students in finance, at quantitative analysts in banks and other financial institutions, and at regulators interested in the modeling aspects of credit risk.

David Lando considers the two broad approaches to credit risk analysis: that based on classical option pricing models on the one hand, and on a direct modeling of the default probability of issuers on the other. He offers insights that can be drawn from each approach and demonstrates that the distinction between the two approaches is not at all clear-cut. The book strikes a fruitful balance between quickly presenting the basic ideas of the models and offering enough detail so readers can derive and implement the models themselves. The discussion of the models and their limitations and five technical appendixes help readers expand and generalize the models themselves or to understand existing generalizations. The book emphasizes models for pricing as well as statistical techniques for estimating their parameters. Applications include rating-based modeling, modeling of dependent defaults, swap- and corporate-yield curve dynamics, credit default swaps, and collateralized debt obligations.

... Read more

Reviews (2)

A casual collection of models without sound understanding
The author briefly touched many models without quite understanding them himself (or checking their validity). Most of the text were collected (and rewritten) from reading the abstract or conclusion of the original papers. There is not enough insight or new info. It is absolutely not a book for someone who wants to learn because it is like a undergraduate's study report. If a book reviews many models, it should provide some insights, pros and cons of them, and at least some framework for other researchers to follow. It loses value if it merely rephrases some obvious and straghtforward assumptions of the original models.

I admire the author and the editor (Duffie) as researchers. However, the author is not ready yet to write a book of this kind and the editor has been a super star in finance, hence should not lower himself to this level for the sake of publication. This book does not provide useful info at all. Not good for a researcher or a practitioner (at all). Why not read the original papers' abstracts? That would be more informative.

A book for those who think Robert Jarrow is a lightweight!
Robert Jarrow praises this book! I think that tells you the level of this text. It's Ivy League Ph.D.-school material with inadequate background provided. I guess if you are already a director of research in an investment bank, this book provides a lucid and compact survey of the current state-of-the-art techniques of credit risk modeling. In short, this is a book written for people who already are comfortable with the subject at a very high level.

If you are a regular Schmoe like myself (someone comfortable at the Hull or Cuthbertson and Nitzche level) much of this book may zoom over your head. But if you regulary snicker at folks like me as derivatives dilatants and poseurs, I'd say check it out.

The book may be great. But for me it was a waste of money.

Did I mention that Robert Jarrow likes it? ... Read more

Book Description

Designed to be accessible, this book develops a thorough, functional understanding of calculus in preparation for its application in other areas. Coverage concentrates on developing concepts and ideas followed immediately by developing computational skills and problem solving. Chapter topics include The Derivative; Graphing and Optimization; Integration; Multivariable Calculus; Trigonometric Functions; and more. For the professional who wants to acquire a knowledge of calculus for application in business, economics, and the life and social sciences.

Reviews (1)

Applied calculus.......there is a method to the madness
I used this textbook in my first calculus class.The applied calculus class showed me some of the things this stuff can actually be used for.The authors and editors have combined excellent graphics, and outstandinghomework problems. If you are a gluton for punishment from word problems,or if you need help at the most basic level of calculus, this is the bookyou'll need. ... Read more

Book Description

If you’re having a baby, you read What To Expect When You’re Expecting.If you’re considering law school, you read One L. And if you’re thinking about working for yourself, you read Free Agent Nation—Daniel Pink’s contemporary classic about leaving the corporate rat race.

Widely acclaimed for its engaging style and provocative perspective,Free Agent Nation has helped thousands transform their working lives.Now the paperback edition of this business bestseller features an all-new section: a comprehensive 30-page resource guide that explains the basics of working for yourself (how to get started, where to find health insurance, how to market yourself) and includes 101 Free Agent Survival Tips culled from successful solo workers nationwide.Hip and hopeful, Free Agent Nation will change and your thinking – and maybe even change your life.Read it today to free yourself tomorrow. ... Read more

Reviews (45)

exceeded my high expectations
Free Agent Nation exceeded my expectations, which were high to begin with. This is not just a drawn-out version of Pink's classic cover story in Fast Company. It reflects extensive research and provides many surprising insights and interesting predictions.

This is not a book you can polish off in an hour or two. It is difficult to convey in a brief review the depth and richness of Free Agent Nation.

Pink demonstrates that free agents are a large and growing share of the work force. He describes some of the economic forces contributing to this phenomenon, but he finds that free agents themselves explain their reasons for leaving the corporate world in psychological terms: a desire for freedom, authenticity, accountability, and flexible concepts of success.

Pink shows that free agents have their own unique perspectives and solutions to such challenges as security, workplace relationships, career advancement, and work-family balance. For example, he describes the way that peer networks are providing the type of career support that formerly came from within large corporations.

Whether you like it or not, the gravitational forces between individuals and large corporations are weakening. In the future, how will business be re-organized? How will the economy function? Daniel Pink asks the big questions, and he comes up with a lot of fascinating answers. I expect Free Agent Nation to become the most talked-about nonfiction book of the year.

The Other Side of the Coin
Having been a member of the "free agent nation" since 1987, I read Daniel Pink's book with interest. There is no question that the American work force is undergoing what may be its most significant transformation since the migration from the farm to the factory one century ago.

The author spent a year traveling the country talking with hundreds of these workers. The portrait that emerges is the death of what William H. Whyte, Jr. named "the organizational man" in his 1956 book of the same name. Replacing him or her is the free agent, the home-based business, temp, freelancer or independent contractor. The lure of freedom, authenticity, accountability and self-defined success are luring workers from their cubical farms, stock options and regular paychecks into a life, the author dubs, "of meaning."

There is another side to this migration. Changes in three areas will be required before this migration becomes a powerful demographic influencing the economy and the nation:

1. Tax Changes
2. Access to Capital Markets
3. Attitudes

First, amend tax codes have to give the free agent the same status as the business he or she left. Benefits need full deductibility and ease of implementation. If the country benefits from independents building businesses, the capital gains tax needs to stop being a political football. It makes no sense to sacrifice to build a business unless there is a carrot at the end of the trail. A reduced or no capital gains tax is a powerful inducement.

State tax departments need to stop looking at independents as training grounds for their new agents. I have better things to do with my time than wet-nurse agents-in-training on a fishing expedition.

Second, open capital markets to the free agent. Capital, if available, is expensive for the individual businessperson. Bank loan officers do not or will not understand the difference between pre-tax and after-tax income. Finders access outrageous fees for equity capital.

Pink cites David Bowie's raising $55 million in 1997 collateralized by his song publishing and album royalties as an example of new financing opportunities available to free agents. For those of us who are not as successful David Bowie, this market place is closed. Democratic financial markets to finance startups, expansions and improvements are a necessity if the move to a free agent nation is to become a serious alternative to the bedrock of American work - the large corporation.

Lastly, social attitudes need to change. For a free agent nation to work concepts of the workday and workweek need to change. The free agent works when there is work. Vacations represent an opportunity cost.

Being a free agent is not an easy life, but one I will never leave.