Recommended Reading

If you are looking to expand your understanding of the economic times we are living in, I recommend the following:

 

In Fed We Trust:  Ben Bernanke’s War on the Great Panic, by David Wessel

This is an easy to read account of how the Federal Reserve essentially became the fourth branch of the Government during the 2008 panic.  It will give you an understanding of how essential the Federal Reserve’s action in keeping the world economy afloat and hence, afford you the ability to understand how the Federal Reserve’s actions in the future will make a difference.

 

Aftershock: The Next Economy and America’s Future by Robert B. Reich

Robert Reich has served in three federal administrations, most recently as the Secretary of Labor under President Clinton.  In this book, he does an excellent job chronicling how we have arrived at the rich versus poor polarity that I have discussed in my seminars.  He has some exceptional prescriptions on how to restore the middle class and rebuild our society.

 

This Time is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart and Kenneth Rogoff

The two authors are well respected economists who analyze eight centuries of financial crisis.  This book presents a very interesting insight into the nature of financial behavior.  It does not simply explain what went wrong in this recent crisis; it presents a blue print as to how things are likely to turn out in the future.

 

Flash Boys: A Wall Street Revolt by Michael Lewis

Lewis tells the story of the development of High Frequency Trading (HFT) by following the lives of an honest stock trader from the Royal Bank of Scotland and a Russian computer technician as they stumble into the bewildering and dishonest world of HFT.  (See Market Update Archive section for full review)

 

Money, Blood, and Revolution by George Cooper

Economist George Cooper suggests that the prominent economic schools of thought: Keynesian, Classicist (or Neo Classicist), Monetarist, Libertarian, Austrian, and Institutional, are evidence that Economics is a broken science believing in multiple, inconsistent things at the same time.  (See Market Update Archive section for full review)

 

Sapiens: A Brief History of Humankind by Yuval Noah Harari

Yuval Noah Harari takes a novel look at our kind and comes up with a very different story than we are accustomed to being told about our past and our future. One of his conclusions is that even though we can do zillions more things than our Neanderthal ancestors, we have not actually gotten any smarter.   It explains a lot.

 

Capital in the Twenty-First Century by Thomas Pketty

Joseph Stiglitz, in a NY Times series on inequality and refers to French economist Thomas Piketty’s book, Capital in the 21st Century, he stresses that one of Piketty’s insights is that inequality is NOT a necessary stage of Capitalism.  Instead, inequality is the result of conscious political decision making to favor the wealthy.

 

The Big Short: Inside the Doomsday Machine by Michael Lewis

Lewis illustrates how the derivative market lead to the financial crisis of 2008.

 

Good reading!

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