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Hardcover
196 pages
ISBN 9780691139296 Published Aug. 2008
Princeton University Press
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Subprime Solution
How Today's Global Financial Crisis Happened, and What to Do about It

Related Blog Posts
The Best Books OF ALL TIME! - The Independent Edition
Posted Dec. 16, 2008 3:52 a.m. by dylan
In Uncategorized - 800 CEO Read Blog

Jack and Todd will soon have the definitive list of the best business books of all time published, but, in the meantime, here is what The Independent's Sean O'Grady has to say on the matter. He chooses from both "timeless classics [and] the latest crop of credit crunch chronicles." It's an interesting list because it's from a newspaper that leans to the left side of the British political spectrum, providing a perspective from the side of the aisle that doesn't speak up on business books as often.

The choices from all time include:

  • The Great Crash by J.K Galbraith, Mariner Books

  • Capitalism Unleashed: Finance, Globalization, and Welfare by Andrew Glyn, Oxford University Press

  • What Management Is: How It Works and Why It's Everyone's Business by Joan Magretta with Nan Stone, Free Press

  • Competitive Advantage: Creating and Sustaining Superior Performance by Michael E Porter, Free Press

  • When Markets Collide: Investment Strategies for the Age of Global Economic Change by Mohamed El-Erian, McGraw-Hill

  • Reminiscences of a Stock Operator by Edwin Lefevre, John Wiley & Sons

  • Liar's Poker: Rising Through the Wreckage on Wall Street by Michael Lewis, Penguin Books

  • Hotel Babylon by Anonymous & Imogen Edwards-Jones, Blue Hen Books

  • The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb, Random House

  • End of the Road: The True Story of the Downfall of Rover by Chris Brady & Andrew Lorenz, FT Press
  • The choices dealing specifically with the current crisis are:

  • The Crunch: Uncovering the Truth Behind the Great Credit Scandal by Alex Brummer, Random House Business Books

  • The Gods That Failed: How Blind Faith in Markets Has Cost Us Our Future by Larry Elliott & Dan Atkinson, Nation Books (being released in the States next month)

  • The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means by George Soros, PublicAffairs

  • The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It by Robert Shiller, Princeton University Press

  • The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis by Graham Turner, Pluto Press
  • The Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash by Charles R Morris, PublicAffairs

  • The Age of Turbulence: Adventures in a New World, by Alan Greenspan, Penguin Books

  • Who Runs Britain? and Who's to Blame for the Economic Mess We're In by Robert Peston (Not available in the States)

  • The Ascent of Money: A Financial History of the World by Niall Ferguson, Penguin Press
  • To read the explanation behind the choices and descriptions of the books, head over to The Independent for the original article.




    Publishers Hedging Their Book Bets
    Posted Oct. 16, 2008 3:21 a.m. by kate
    In Current Events - 800 CEO Read Blog

    With the present financial madness, publishers have been hedging their bets on how fast they can turn around the next big financial book.

    The folks over at The Economist recently researched the extent of the hedging. They counted at minimum 18 books on the crisis that are either in the works or already in the shops. More are certain to join.

    The published books include: The Subprime Solution by Robert Shiller, Charles Ellis's The Partnership on Goldman Sachs, The Ascent of Money by Niall Ferguson (due out in November), and one on the Oracle of Omaha The Snowball: Warren Buffett and the Business of Life.

    Writers who signed on for future looks at the financial crisis are Joe Nocera and will be publishing through Penguin. And CNBC's Charlie Gasparino who signed with Collins Business.

    The Economist ends the review by comparing publishers' hedging to that of what's currently happening on Wall Street -- placing all their bets in investments seemingly full of potential and, in the end, few will be successful best sellers.




    Business Books For The Current Credit Crunch
    Posted Sept. 29, 2008 4:59 a.m. by todd-sattersten
    In History and Biographies - 800 CEO Read Blog

    Shelf Awareness, a great site that follows the book trade, requested book suggestions that would help explain the current credit crisis.

    On Friday, they ran the piece under the heading Meltdown Lit: Recommended Books for the Wall Street Debacle. Please go check out the whole piece. There are great suggestions.

    Below is our original submission, which they used extensively for the article:

    --The Subprime Solution by Robert Shiller

    Shiller's work on housing values is well-known and originally established in Irrational Exuberance. His latest book just released in August describes pretty clearly the mortgage crisis we are in and offers some solutions to get out.

    --Essays on the Great Depression by Ben Bernanke

    You want some insight into what the current Fed chairman is thinking, reading his perspective on the last event of this magnitude may help understand what he does in this one.

    --The Age of Turbulence by Alan Greenspan

    Hearing from the latest Fed Chairman might also be useful. Many are laying the blame at Mr. Greenspan's feet. The paperback that was released on September 9th has a new chapter with his thoughts on the current credit crisis.

    --When Genius Failed by Roger Lowenstein

    This from a review I wrote:

    "Throughout When Genius Failed, financial journalist Roger Lowenstein foreshadows the coming doom and so there is no surprise in how the story of Long-Term Capital Management ends. But what Lowenstein does best is show how blind arrogance brought down the company and almost the entire financial system. Building on the work of two Nobel Laureates and growing capabilities of computer technology, Long-Term Capital Management pushed academic theory further into real-world practice than had ever been done before, and becomes a case study for how markets defy formulaic explanation. Lowenstein’s narrative, while set in the complicated financial market of today, tells an ages-old story many will recognize." (P.S. This was peanuts compared to the current crisis.)

    --Smartest Guys In The Room by By Bethany McLean and Peter Elkind

    This from a review Jack wrote:

    "In my research, I have not found any evidence that anybody colluded to rob the place. Smart, rich, influential men do not deliberately destroy the source of their wealth and influence. Instead, they got trapped in a nightmare of their own creation, or perhaps their own ego. Enron's failure was not deliberate; it was the result of a series of interconnected events. Can this happen again? Sure, when you have hubris at the CEO level, sales peoples’ compensation based on short term success, upper level people totally focused on growth to satisfy short term Wall Street success, an accounting system that supports this concept, and finally an accounting firm that doesn’t do a good job of oversight. Add to this a deregulated industry and watch what happens." (this sounds familiar too).




    Book Review Roundup
    Posted Sept. 16, 2008 6:36 a.m. by dylan
    In Book Reviews - 800 CEO Read Blog

    We haven't taken a look at what books the big business magazines have been covering for awhile, in part because the coverage has been kind of slim. The Economist has covered some really, really, interesting looking books, but seems to have taken a hiatus from business books.

    Even BusinessWeek is reviewing business books with a bent toward the larger picture rather than your more typical business book. Susan Berfield recently reviewed pollster John Zogby's The Way We'll Be:The John Zogby Report on the Transformation of the American Dream, calling it "provocative but occasianally maddening." Although she believes "Zogby comes across as a serious man with his finger reliably on the pulse of the U.S. public," she doesn't agree with all of his assessments. Namely this quote from the book:

    The people who are losing their jobs are adjusting. They're altering their ambitions . . . to bring them in line with the realities of their lives.

    And, this one, concerning the growing disparity between the rich and poor:

    Rather than boil with resentment that some have so much when others have so little, most Americans seem to accept the billionaires among us and even empathize with the problems that come with having too much of everything.

    In effectively simple response, Berfield writes "We do?" However, due to the fact that Zogby has done polling for such corporate clients as Coca-Cola, IBM, and Microsoft, there are bound to be significant insights for entrepreneurs on the changing demographics of this country, and I know a few folks in the office were looking forward to checking that out.

    Christopher Farrell's review of The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do About It by Robert J. Shiller in the September 15th issue is more positive. This probably won't help with the nuts and bolts of your business, but if you're interested in a good look at broader economic issues and government policy, Farrell calls Shiller's diagnosis "one of the best cases ... for New Deal-scale short-term intervention by Washington."

    Adam Aston's review in the September 22nd issue is given two pages, probably because he reviews Thomas Friedman's Hot, Flat and Crowded. He hilariously writes of the book that "if Fareed Zakaria and Al Gore met and co-authored a long-winded book, this would be it," but lavishes great praise on the book throughout, even suggesting sections of it if you're not going to read the entire thing. Many of you are going to read this book regardless, but for those of you on the fence, Aston's review might be persuasive.

    Getting into your more traditional business book, Inc.'s "skimmer's guide" this month is to Billion-Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years by Paul Carroll and Chunka Mui, and contains this summary:

    The backstory: Mui is co-author of Unleashing the Killer App, among the best books about the business implications of technology. He and Carroll worked together at a consulting firm. If Killer App is Mui's Paradiso -- a celebration of the bold and innovative--this new book is his Inferno--an indictment of the bold and chowderheaded.

    And, although they don't post book reviews online, Jia Lynn Yang also wrote briefly and positively of Billion Dollar Lessons in Fortune's September 1 issue, and Daniel Okrent reviewed Randall Stross's Planet Google in the issue of September 15, writing:

    Though Stross's eyes occasionally pop at the wonders being concocted in the Googlian halls, this isn't a fan book; he's as insightful on the company's failures (the oafishly naive start of it's book-scanning operation, the financial swamp of its video efforts) as he is on its triumphs.

    I'd just like to say that "the oafishly naive start of it's book-scanning operation" gave more than a few people in the book publishing industry prematurely gray hairs. That's just how intimidating the force that Okrent describes as "the 21st century's most notable company/employer/verb" has so quickly become.