Posts filed under “Books”
This week in our Masters in Business interview, we speak with with Jason Zweig, the Wall Street Journal personal finance columnist, and author of Your Money & Your Brain and the forthcoming The Devil’s Financial Dictionary. Zweig spent 2 years helping Daniel Kahneman write Thinking, Fast and Slow; he also was chosen as the editor of the revised edition of Benjamin Graham’s The Intelligent Investor.
In 2013, he won the Loeb Award for Personal Finance writing
A former writer for Money magazine, Time magazine and cnn.com; covered mutual funds editor at Forbes Today, he is the personal finance writer for the WSJ. Zweig also serves on the editorial boards of Financial History magazine and The Journal of Behavioral Finance.
Listen to it live today on Bloomberg Radio at 10am and 6pm and throughout the weekend. The full podcast is available on iTunes, SoundCloud and on Bloomberg. Earlier podcasts can be found on iTunes and at BloombergView.com.
Coming up this week for our Masters in Business podcast, I am sitting down for a conversation with Jason Zweig. One of my favorite books of his is Your Money & Your Brain. Buried within its appendix is a great list of common sense rules that are commonly ignored. Perhaps I can find a few questions…Read More
“E-Book Sales Fall After New Amazon Contracts” Beware of your dream coming true. For years we’ve heard that music is undervalued, that people must pay more. But maybe the consumer doesn’t want to. That seems to be the case with e-books. When Amazon launched the Kindle no e-book was over ten bucks. A business burgeoned….Read More
Puerto Rico Defaults – Our new Muni Book Davd Kotok Cumberland, August 1, 2015 It’s official. Puerto Rico defaults. Here is a full list of discussions. As my colleague and co-author, Michael Comes, has described in detail, this is a default on a “moral-obligation” bond. Litigation will certainly start next week. A moral ob….Read More
Summertime is here. The days are still getting longer, the kids will soon be in camp, the beach beckons. With Memorial Day behind us, we have 12 weeks before Labor Day sneaks up on us. My goal each year is to read three books a month between the holidays that mark the unofficial start and…Read More
For over 20 years, Fiderer has been a banker covering the energy industry. Before that he was a tax lawyer. He wrote extensively about the crisis in Huffington Post until early 2011, when there was blowback in response his characterization of claims made by Peter Wallison, about Fannie and Freddie’s role in the mortgage crisis, as “lies.” He is currently trying to finish a book on the rating agencies in his spare time.
Pundit-Level Arguments Dominating Elite Business Schools Financial Crisis Discussions
by David Fiderer
Yet the book has been greeted enthusiastically. It was recently considered by the Financial Times and McKinsey for the Business Book of the Year Award, and its thesis about the recent financial crisis has been presented by the authors at events hosted by the World Bank, the Bank of England, the San Francisco Fed, the Atlanta Fed and the SEC. “[I]f you are looking for a rich history of banking over the last couple of centuries and the role played by politics in that evolution there is no better study,” wrote The New York Times reviewer. “It deserves to become a classic.” The book’s false portrayal of the recent crisis, left unchallenged, is likely to be used as a standard reference work for conservatives intent on rewriting history.
The two authors, Prof. Charles Calomiris of Columbia and Prof. Stephen Haber of Stanford, are well known. Calomiris’s 67-page CV cites, among many accomplishments, his stints as a Visiting Research Fellow at the International Monetary Fund and as a Senior Fellow at the Bank of England, as well as his 21-year affiliation with the American Enterprise Institute. Haber, who teaches Political Science at Stanford, is a Senior Fellow at Stanford’s Hoover Institution.
The book’s central argument is that the proximate cause of the financial collapse was the risky lending mandated by Community Reinvestment Act (CRA) and by affordable housing goals set for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. This familiar narrative, identified as “The Big Lie” by Joe Nocera, Barry Ritholtz, and others, is still deemed valid by a lot of people who should know better. Simply put, loan performance at Fannie and Freddie has always been exponentially superior to that of any other sector in residential mortgages, whereas the loan performance of private label residential mortgage securities has been radically worse than that of other sectors in the mortgage market. Most of the credit losses were tied to private mortgage securities. To state otherwise is a lie.
Calomiris and Haber embrace The Big Lie, and double down by tracing everything to Bill Clinton’s grand strategy of income redistribution as a response to economic inequality or as a sop to community activists at ACORN. Their story is as follows: in the 1990s banks sought government approval for proposed mergers and soon recognized that such approval was subject to certain conditions set by Clinton and his urban activist allies. The banks were compelled to book vast numbers of recklessly imprudent loans extended to the urban poor, by way of the CRA and GSE affordable housing goals.
Open Secret: The Global Banking Conspiracy That Swindled Investors Out of Billions is the new book written by Erin Arvedlund.
The book goes behind the scenes of the elite firms that trafficked in LiBOR based products, including Barclays Capital, UBS, Rabobank, and Citigroup to show the negative impact they had on both ordinary investors and borrowers.
Erin’s claim to fame was a column she wrote in Barron’s in the early 2000s outing Bernie Madoff as a fraud. It was a national bestseller titled Too Good to Be True.
Here is Yahoo:
“LIBOR, the London Interbank Offered Rate, is a global benchmark for interest rates. It’s tied to everything from mortgage rates and student loan rates to complex financial derivatives. And guess what? For a very long time it was rigged.
Now, multiple lawsuits are pending, and that could mean some money back for some investors, traders and consumers.
LIBOR is set each day by a group of bankers, based on estimates of rates at which banks would expect to borrow money from each other. It’s a system built on trust, not math. Regulators were tipped off back in 2007 that banks were fixing rates, and by the summer of 2012, an ugly scandal was revealed. An estimated $300 trillion in financial securities worldwide are based on LIBOR.
Video after the jump . . .
Bubbles, Bubbles Everywhere By John Mauldin August 15, 2014 Easy Money Will Lead to Bubbles Excess Liquidity Creating Bubbles Humans Never Learn Anatomy of Bubbles and Crashes A Few Good Central Bankers Jack Rivkin at His Best Dallas, San Antonio, and Washington DC The difference between genius and stupidity is that…Read More
Morgan speaks with Josh about Clash of the Financial Pundits: How the Media Influences Your Investment Decisions for Better or Worse.
There are a lot of smart investors. There are a lot of entertaining people. There are few of both. Josh Brown, The Reformed Broker blogger is one of them. He is as insightful as he is hilarious, which, after bursting onto the scenes a few years ago, made him almost overnight one of the biggest names in the financial media.
Josh’s new book, Clash of the Financial Pundits, co-written with Jeff Macke, digs deep into the financial punditry business to show why pundits talk and investors listen. It’s a incredibly good read.
Josh sat down with Morgan earlier this week.
Have a look: