There are few key point that I have extracted to my further reading and continuously excerpting from his lectures. Some readers may suspect that Shiller, a Yale professor, underestimates the materialism of Manhattan and Greenwich. At a time when the world is reeling under the spell of the worst ever economic crisis since the Great Depression of 1929, the financial domain has come in for some scathing and loathsome attack much of it deserved for the blatant ills promulgated and propagated by its practitioners in a shameless manner. But the best passages in this book make a persuasive case for a fresh view of an industry that is too glibly demonized. Errors by educators, Shiller believes, played a role in the financial crisis. Shiller also takes academics to task for focusing on research rather than preparing students for the real-world practice of finance.
The difficulty of thinking through the array of the many hypothetical results and events that could occur in the future. We need more financial innovation--not less--and finance should play a larger role in helping society achieve its goals. Before 1853, runners from each of the New York City banks, throughou Market-based economies, aided by innovative financial tools, have provided opportunities for widespread, if not total, employment, scientific and technological advances, a better quality of life, and, in the best of circumstances, a chance to more people to become educated and prosper. The key, he says, in his new book, Finance and the Good Society, is to democratize finance--giving the rest of us access to the tools and techniques that rich folks have used for decades to raise capital and protect themselves from risk. One sees immediately the feedback loop established that makes it extraordinary difficult to think in opposing terms to the crowd, or herd's decisions. This facilitates many enterprises, transactions and trades that otherwise would not have happened. Sadly this is — at best — a hit-and-miss book.
Shiller is the author of Irrational Exuberance and The Subprime Solution, and the coauthor, with George A. Short term gains will have to transform to long term goals in order for ethical and business goals to align. Under that regime, tax rates would not be set in advance but would change along with pre-tax income inequality to be exactly progressive enough to ensure that the after-tax distribution of incomes was socially acceptable. Schiller cites behavioral economics and relevant branches of psychology, neurology, and philosophy when it suits him and his book on irrational exuberance shows that he takes some of these things very seriously , but I would have liked to see him address some of the more worrisome results from these disciplines--e. The reputation of the financial industry could hardly be worse than it is today in the painful aftermath of the 2008 financial crisis.
Accountants and Auditors 100 14. I found the early parts of the book around the first half to be mediocre at best. But in this important and timely book, Shiller argues that, rather than condemning finance, we need to reclaim it for the common good. The rest of the book is better, though marred by simplistic discussions of neurology, animal behaviour and human psychology. He shares several old and new ideas that probably make too much sense, and are too non-traditional to be accepted by financiers and governments. I'm guessing this is where he is more keen towards behavior finance, it is interesting in how its apply throughout human commu Am still following his lectures at Yale open university, online.
If you are looking for a social revolution, you will not find it in Finance and the Good Society but if you are planning a social revolution you should definitely read this book first. It treats them as publicly minded angels. If firms and individuals cannot insure themselves against bad outcomes, they will be necessarily cautious; the economy will grow more slowly than it should. His focus on 'the good society' is absolutely correct: to build the better society that philosophers and social scientists have sought for ages, we badly need a financial system that works, not only for big business but for all of us. He argues convincingly that finance can, should and usually does make the world a better place.
Again, these ideas merit a detailed discussion that could inform readers about their benefits and potential pitfalls. But in 1853, that changed when 54 of the New York City Banks gathered each business day in a large room around a circular table with 54 chairs occuried by a representative of each of those banks at a designated time every day. More are available on the or in the. But in this important and timely book, Shiller argues that, rather than condemning finance, we need to reclaim it for the common good. The second half of the book gives arguments for and against finance and their implications. Notes Includes bibliographical references p. Shiller's sensible message demands urgent attention.
Here are my thoughts: 1. Its partly a 101 on financial markets, and a treatise on why they are important for a flourishing, equitable civilization--- there it succeeds. I lean to keep it simple solutions that I understand, or at least think I understand. Debt and Leverage 151 24. It also is an utmost defense of the status quo. Shiller is arguably the most imaginative and informed thinker in finance today. Mortgage securities and derivatives in particular.
Shiller has made a good contribution to that discourse with this book. Needless to say, Robert Shiller is a leader in finance and economics. Improvements can be made, and when the serial crises are over in a few years, hopefully we can discourse intelligently on these improvements. I also believe that much of modern finance is enormously beneficial for humanity -- just as I believe that the excesses and the weaknesses need to be addressed. Robert Shiller is renowned for identifying the stock market bubble as early as 1996 and the real estate bubble in 2006. According to Shiller, the problem was not stupidity but, rather, one of assigning responsibility and coordinating the efforts of diverse interests. However improvements to the current system are obviously called for.
Challenging the public and its leaders to rethink finance and its role in society, Shiller argues that finance should be defined not merely as the manipulation of money or the management of risk but as the stewardship of society's assets. His focus on 'the good society' is absolutely correct: to build the better society that philosophers and social scientists have sought for ages, we badly need a financial system that works, not only for big business but for all of us. Later still, when the accountants received those documents and the securities were properly accounted for, the banks squared their books with each other, a time-consuming process subject to theft and error. An important book for those who seek change. Robert Schiller, one of the most respected and prescient economists plying his wares today, offers, in this book a set of measures and means by which Finance can be restored to a pedestal of respectability and trust. Finance and the Good Society opens the door to what it really means to live in a good society. I am not a cynical person.
He freely admits to the capitalist system's failures and its role in the recent global recession, but views these not as an indictment on the system itself, but on misguided incentives, policies, and human weaknesses. This book will show them why finance is and should be a vital part of the good society's solution, rather than its problem. A lot of the book is preoccupied with showing minor flaws in the financial industry uninteresting to me because he severely minimizes these problems , and showing minor reforms or tweaks to the financial industry not just state regulations, but also entrepreneurial ideas which could be done to improve outcomes for everyone very interesting to me because if you are creative you can extrapolate a lot more radical and extensive changes from the minor ones he suggests. According to Shiller, the problem was not stupidity but, rather, one of assigning responsibility and coordinating the efforts of diverse interests. An individual will not consume to the full extent of his capacity if he cannot insure his house or health. Shiller the stock market commentator is much loved.