This first edition of this book was a broad study, drawing on a wide range of published research and historical evidence, of the enormous stock market boom that started around 1982 and picked up incredible speed after 1995. Although it took as its specific starting point this ongoing boom, it placed it in the context of stock market booms generally, and it also made concrete suggestions regarding policy changes that should be initiated in response to this and other such booms. The book argued that the boom represents a speculative bubble, not grounded in sensible economic fundamentals. Part one of the book considered structural factors behind the boom. A list of twelve precipitating factors that appear to be its ultimate causes was given. Amplification mechanisms, naturally-occurring Ponzi processes, that enlarge the effects of these precipitating factors, were described. Part Two discussed cultural factors, the effects of the news media, and of "new era" economic thinking. Part Three discussed psychological factors, psychological anchors for the market and herd behavior. Part Four discussed attempts to rationalize exuberance: efficient markets theory and theories that investors are learning. Part Five presented policy options and actions that should be taken.
The second edition, 2005, added an analysis of the real estate bubble as similar to the stock market bubble that preceded it, and warned that "Significant further rises in these markets could lead, eventually, to even more significant declines. The bad outcome could be that eventual declines would result in a substantial increase in the rate of personal bankruptcies, which could lead to a secondary string of bankruptcies of financial institutions as well. Another long-run consequence could be a decline in consumer and business confidence, and another, possibly worldwide, recession." Thus, the second edition of this book was among the first to warn of the global financial crisis that began with the subprime mortgage debacle in 2007
NEWS & OPINION: 2012 800-CEO-READ Business Book Awards Shortlist: Finance & Economics
Posted December 13, 2012, 4:29 PM with category of General Business
Over the course of this week, we will be posting the shortlist selections for our 8 business book categories: General Business, Leadership, Management, Innovation/Creativity, Small Business/Entrepreneurship, Marketing/Sales, Personal Development, Finance.
On Monday, December 17th, we'll announce the category winners, and, on Wednesday, December 19th, we'll celebrate the overall winner of the 2012 800-CEO-READ Business Book Awards! Stay tuned.
NEWS & OPINION: Two Lists
Posted October 28, 2008, 2:00 PM with category of General Business
The Arizona Republic printed a list of recommended finance and business titles from Jeffrey L. Coles'--finance department chair at Arizona State University. They are:
Against the Gods: The Remarkable Story of Risk by Peter L.
NEWS & OPINION: Business Books For The Current Credit Crunch
Posted September 29, 2008, 2:59 PM with category of Finance & Economics
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.
NEWS & OPINION: getAbstract's Best Books of 2005
Posted December 9, 2005, 2:44 PM with category of General Business
getAbstract has a list of their favorite business books for 2005:
Irrational Exuberance by Robert Schiller
Scenarios by Kees van der Heijden
The One Thing You Need to Know by Marcus Buckingham
The World Is Flat by Thomas Friedman
Blue Ocean Strategy by Renee Mauborgne and W. Chan Kim
The People's Tycoon by Steven Watts
And the Money Kept Rolling In (and Out) by Paul Bluestein
Winners Never Cheat by Jon Huntsman
The German Economy by Horst Siebert
Wedding of the Waters by Peter Bernstein
Icon Steve Jobs by Jeffery Young and William Simon
Brand Hijack by Alex Wipperfurth
How to Grow Leaders by John Adair
Trillion-Dollar Moms by Bonnie W.