Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization Review

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(More customer reviews)I read Jeff Rubin's book because I invest in energy stocks and like to know the broad societal implications of energy issues. I was fascinated by his major premise that high energy costs will end the global marketplace. It is the opposite of Tom Friedman's World is Flat premise. Rubin's basic argument is that high energy prices will trump low labor costs of developing countries. That will mean we will re-industrialize and start making things again in America. That may make us look more like 1950's America. Most economists say globalization is irreversible but Rubin disagrees. Globalization is only possible when cheap energy allows shipping anything at low cost.
There are two other books that have the same end of cheap energy theme. One is Stephen Leeb's Game Over and the other is $20 a Gallon by Chris Steiner. Leeb's book is more of an investment survival guide while Steiner's $20 a Gallon is more of a sociological portrait of America in the age of prohibitive gas prices. Leeb is rather depressing in positing the end of cheap energy and commodities in general. Leeb sees global insecurity as countries fight for resources.
Steiner sees high energy as an opportunity to re-urbanize America with close in dense communities without cars. Steiner does a great job of predicting how escalating gas prices will change our lives. He says we may be happier living a simpler less consumption oriented lifestyle.
Rubin's book is the best all round book for it covers both economics and sociology. If you want to know how to make money from energy shortages, Leeb has some valuable and practical advice. Steiner will leave you hopeful for a simpler, more community minded America. I recommend all three books without hesitation as helpful guides to an America facing a dearth of resources in the next 20 years. They certainly reinforce the need for a national energy policy now while we may be able to extend resources.

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An internationally renowned energy expert has written a book essential for every American–a galvanizing account of how the rising price and diminishing availability of oil are going to radically change our lives. Why Your World Is About to Get a Whole Lot Smaller is a powerful and provocative book that explores what the new global economy will look like and what it will mean for all of us.In a compelling and accessible style, Jeff Rubin reveals that despite the recent recessionary dip, oil prices will skyrocket again once the economy recovers. The fact is, worldwide oil reserves are disappearing for good. Consequently, the amount of food and other goods we get from abroad will be curtailed; long-distance driving will become a luxury and international travel rare. Globalization as we know it will reverse. The near future will be a time that, in its physical limits, may resemble the distant past.But Why Your World Is About to Get a Whole Lot Smaller is a hopeful work about how we can benefit–personally, politically, and economically–from this new reality. American industries such as steel and agriculture, for instance, will be revitalized. As well, Rubin prescribes priorities for President Obama and other leaders, from imposing carbon tariffs that will increase competition and productivity, to investing in mass transit instead of car-clogged highways, to forging "green" alliances between labor and management that will be good for both business and the air we breathe.Most passionately, Rubin recommends ways every citizen can secure this better life for himself, actions that will end our enslavement to chain-store taste and strengthen our communities and timeless human values.

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Killing Sacred Cows: Overcoming the Financial Myths That Are Destroying Your Prosperity Review

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(More customer reviews)I don't usually review books on Amazon, but this one irritated me enough to make the effort.
This book is a new age self-help motivational screed in the guise of financial planning advice. There are a few interesting points made, a lot of questionable ones, and some potentially harmful suggestions.
I found myself skipping whole paragraphs of the author repeating himself and his vague platitudes for the umpteenth time. I felt like I was holding my breath, waiting for him to get to the meat of the financial advice... all the way to the end.
Guess what I found at the end? Several sales pitches for his and his friends seminars, websites and books.
As another reviewer said, the 'meat' of this book would only fill a single chapter. The rest is fluff.
Don't follow the (possibly fradulent) positive-reviewing sheep, and don't waste your money on this book - if you really want to take a look, get it from the library (like I did).

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Our culture is riddled with destructive myths about money and prosperity that are severely limiting the power, creativity, and financial potential of individuals. In Killing Sacred Cows, Garrett B. Gunderson boldly exposes ingrained fallacies and misguided traditions in the world of personal finance. He presents a revolutionary perspective that can create unprecedented opportunity and wealth for thoughtful, mission-driven individuals.
Our financial lives are intimately connected to our societal contributions, and we must be financially free in order to achieve our fullest potential. Sadly, however, most people are held captive in their financial lives by misinformation, propaganda, and limited knowledge. Through well-reasoned arguments, unflinching logic, and revelatory insight, Gunderson defeats common clichés and faulty retirement planning advice to plainly demonstrate the following and much more:

401(k)s and the stock market are the most risky investments for most people and the gambling mindset they induce creates disastrous consequences.
Conventional retirement planning advice, products, strategies, and techniques expose you to significant danger of being unable to retire, or of running out of money prematurely if you do.
Building net worth is a recipe for creating a life of fear and poverty and how to escape that common trap.
Debt may not be what you think it is and why that matters to your prosperity.
'High risk equals high returns' is destructive dogma and how reducing risk can increase your returns.

Killing Sacred Cows is a must-read for brave individuals willing to question common assumptions and teachings, overcome the herd mentality, break through financial myths, and live a purposeful, passionate, and prosperous life.

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Today and Tomorrow - Special Edition of Ford's 1926 Classic Review

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(More customer reviews)This is an outstanding book for those folks in manufacturing who are starting out on their "Lean" journey. The book teaches the uninitiated an original thinker's way of recognizing "waste" in manufacturing, and often, how to deal with that waste. Taiichi Ohno took a "shipload" of this book with him to Japan in the '50s and made sure that every Toyota engineer read the book. The rest is history as to how Toyota packaged this information for the rest of the world, including the United States, in its now famous "7 wastes of manufacturing." You will enjoy the book and learn what an outstanding visionary Henry Ford really was.

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Winner of the 2003 Shingo Prize!Henry Ford is the man who doubled wages, cut the price of a car in half, and produced over 2 million units a year. Time has not diminished the progressiveness of his business philosophy, or his profound influence on worldwide industry. The modern printing of Today and Tomorrow features an introduction by James J. Padilla, Group Vice President, Ford North America. It also includes an enhanced selection of photos illustrating the processes and facilities Ford covers in the text. Taiichi Ohno acknowledged that a key stimulus to JIT was his close reading of this book. Today, these same ideas are re-emerging to revitalize American industry in new ways. "I, for one, am in awe of Ford's greatness. I believe Ford was a born rationalist -- and I feel more so every time I read his writings. He had a deliberate and scientific way of thinking about industry in America. For example, on the issues of standardization and the nature of waste in business, Ford's perception of things was orthodox and universal."- Taiichi Ohno

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Slapped by the Invisible Hand: The Panic of 2007 (Financial Management Association Survey and Synthesis) Review

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(More customer reviews)Gorton has made an important contribution to the debate on the Financial Crisis (and I was eager to read his book because of it). He argues that government guarantees of retail deposits enacted in the 1930s, and not capital adequacy requirements, (temporarily) ended previously common panicked withdrawals from the entire banking system. As uninsured short-term institutional deposits have grown and become the primary source of funds for money center banking, it was just a matter of time before these runs began anew. But the book just about starts and ends there. At a critical junctures like ours, the country needs clear thinkers like Gorton to provide leadership by addressing the issues comprehensively, speaking out against demagoguery and making recommendations. Otherwise, why step to the microphone with a book instead of the papers he already published? Gordon scarcely draws conclusions and makes no substantial recommendations!
He points out why repurchase agreement failed as an alternative to government guarantees but goes no further. He shows (in many pages of unnecessary detail) that structured finance contributed to the difficulty of knowing how much (sub-prime) risk each bank held but he doesn't analyze whether credit default swaps and flawed credit ratings also contributed to the confusion. Nor does he show that the value of withdrawing funds to reduce risk in fear of others doing likewise wouldn't have occurred no matter the availability of information. He admits that better information likely would not have solved the problem but he offers no alternatives.
He claims, with little support (although surely its true) , that increased capital adequacy requirements will simply contract the boundaries of banking but he doesn't show where, speculate how the resulting unfilled customer needs with be filled and whether these alternatives would be good or bad for the economy in terms of reducing systematic risk. In this context you'd also like to hear his evaluation of convertible bank debt as an alterative solution to the problem but again, nothing. (Increased reserves would likely curtail mortgage lending.) He asserts that the reduced value of monopoly rent conferred by previously restricted bank charters caused banks to take more risk. If his recommendation is to return to something akin to the restrictions of old, it would take a lot more than just pointing out the issue to show how, why and to what effect.
If you put forward a theory, you also have to show why it's better than alternative explanations but he devotes only a couple pages to pooh-poohing the alternative theories that originate-to-distribute and misaligned incentives reduced lending standards (although I agree with his conclusions) . Except for noting that sub-prime finance served as a trigger, he never addresses the role of Freddie and Fannie in spurring on sub-prime mortgage lending and the extent to which the crisis could have been averted were that not the case. (Presumably we can infer Gordon thinks something else just would have come along.) The role of the trade deficit in the build-up of uninsured short-term institutional deposits is never mentioned. If the answer is for the government to guarantee institutional deposits should we also be guaranteeing offshore deposits into US financial institutions?
If you've read Gorton's papers, there is nothing more here. If you haven't, it's a lot to slog through for what could have been summarized in a much shorter piece. Sentences like, "This agent cares about the intertemporal marginal rate of substitution, so the pricing kernel weights the expected returns on the demand deposits in determining the currency-deposit ratio." and many others like it, are not helpful to the public debate. If you've been sucked in by the superficial logic of demagogues... unfortunately I haven't yet seen a better alternative by a serious thinker.


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Originally written for a conference of the Federal Reserve, Gary Gorton's "The Panic of 2007" garnered enormous attention and is considered by many to be the most convincing take on the recent economic meltdown. Now, in Slapped by the Invisible Hand, Gorton builds upon this seminal work, explaining how the securitized-banking system, the nexus of financial markets and instruments unknown to most people, stands at the heart of the financial crisis. Gorton shows that the Panic of 2007 was not so different from the Panics of 1907 or of 1893, except that, in 2007, most people had never heard of the markets that were involved, didn't know how they worked, or what their purposes were. Terms like subprime mortgage, asset-backed commercial paper conduit, structured investment vehicle, credit derivative, securitization, or repo market were meaningless. In this superb volume, Gorton makes all of this crystal clear. He shows that the securitized banking system is, in fact, a real banking system, allowing institutional investors and firms to make enormous, short-term deposits. But as any banking system, it was vulnerable to a panic. Indeed the events starting in August 2007 can best be understood not as a retail panic involving individuals, but as a wholesale panic involving institutions, where large financial firms "ran" on other financial firms, making the system insolvent. An authority on banking panics, Gorton is the ideal person to explain the financial calamity of 2007. Indeed, as the crisis unfolded, he was working inside an institution that played a central role in the collapse. Thus, this book presents the unparalleled and invaluable perspective of a top scholar who was also a key insider.

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A Presidential Energy Policy: Twenty-Five Points Addressing the Siamese Twins of Energy and Money Review

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(More customer reviews)This book explains the relationships between energy (especially oil) and finance. The book is written in a clear and straight-forward manner that makes it accessible to everyone. If you would like to understand the relationship between oil and finance, and how the present policy arrangements for these vital components of the system we live within have brought the world to the brink of financial, social and cultural collapse, then read this book.
For years Mike Ruppert has been accurately and relentlessly forecasting that unless we changed our understanding of energy and the way money works, the financial collapse we have now been witnessing would take place. His only objective has been to advise any who would listen about the paradigm shifting changes under way, and therefore how to prepare themselves in order to best survive, and even to prosper during and after the crisis.
With that in mind, in this book he explains the current crisis clearly and succinctly before setting out a policy agenda which offers a path forward - not just for shadowy multi-billionaire and multi-trillionaire bankers and their friends but for all citizens of the United States and in fact of the world. The contents of the book cover oil depletion (peak oil), electricity infrastructure, alternative energies, food, localization, money, foreign policy, and of course a twenty five point plan for addressing the most urgent issues.
To date the elected officials of the United States, whichever party they represent, seem to believe that lining the pockets of the financial elites with untold trillions worth of dollars of taxpayers money is the only policy response worth pursuing (Cynthia McKinney, Ron Paul and Roscoe Bartlett being honourable exceptions).
Yet there is always the possibility that a courageous leader will decide to represent the citizens he or she has been elected to represent, rather than unelected vested interests. By following the advice of 'A Presidential Energy Policy', such a leader has the opportunity at this critical turning point in world history, to reap a rich harvest of gratitude and praise for his or her actions that far outweighs the morally destitute rewards of money and power.
In summary, 'A Presidential Energy Policy' is a book which every person who cares about the future of the United States and the planet we live on should read and pass on to everyone they know. The crisis is well advanced, but perhaps with enough Mike Rupperts in the world sufficient elements of civilization can be salvaged to make life worth living, not just for the elite members of the financial-energy-military-industrial complex, but for all citizens of the world.
As it stands, Mike Ruppert himself stands at a minimum to personally reap a harvest of good karma for selflessly seeking to expose the way financial and energy elites exercise control over government and for explaining it to everyday people. Were the policy agenda he sets out here to be followed, however, he would also stand to achieve fitting recognition for his life's work. May it happen.

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Michael Ruppert addresses some simple but widely ignored concepts relating to the critical role of oil and gas in the modern world. First, they are finite resources, formed in the geological past, therefore subject to depletion. Second, they have to be found before they can be produced. He then goes on to address the wider implications recognizing that there is a finite Oil Age. Many claims have been made that new technology will counter the natural decline, but there is an irony: the better the technology, the faster the depletion. The book then turns to related subjects, including foreign policy and the invasion of Iraq, the hopes for renewable energy substitutes, the impact on farming and population, and the nature of Money. The impact on the economy is a central theme of the book. It gives emphasis to the U.S. situation but also covers the wider World, ending with twenty-five sensible recommendations by which the United States Government could react to the unfolding situation.

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The Myth of Progress: Toward a Sustainable Future Review

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(More customer reviews)I pulled this book from my waiting stack after reviewing Vice: Dick Cheney and the Hijacking of the American Presidency While all that we do wrong is rooted in corrupt politics such as Dick Cheney represents so well, I wanted to get away from the personalities and focus on the underlying truths of the greatest challenge facing all of us, preserving the planet for future generations.
This thoughtful careful author from New Hampshire has created a really special book, small, readable, and packed with fact (superb footnotes). He gives all due credit to his predecessors in the field--Georgescu-Roegen, Meadows, Dalay, Hawken et al.
He brings out the nuances of complex systems and how our linear reductionist thinking, and our false assumption that technology will resolve our waste creation and earth consumption issues, combine to place all that we love at risk. I was personally surprised to learn that even if we fund 100 water desalination or decontamination plants, and resolve our shortfalls of clean water, that the energy required to do so would result in entropy and further losses.
The author brings up the need for better metrics (see my reviews of "Ecology of Commerce" and "Natural Capitalism" as well as my list on "True Cost" readings. He points out that the GDP does not reflect the non-cash economy or the degree of equality/inequality in the distribution of new wealth. I would add to that the importance of counting prisons and hospitals as negatives rather than positives.
A good portion of the book (a chapter for each) is spent discussion the three fundamentals: the limits to growth; the second law of thermodynamics (entropy); and the nuances of self-organization and what happens when you reduce diversity.
The author lists the attributes of complex systems as being emergent properties that arise from the interactions (i.e. the space between the objects); self-organization, nestedness, and bifurcation into either positive or negative consequences.
The bottom line for the first part of the book is that in complex systems, especially complex systems for which we have a very incomplete and imperfect understanding, "control" is a myth, just as "progress" is a myth if you are consuming your seed corn.
The author excels at a review of the literature and demonstrating the flaws of economic theories that are divorced from reality and the "true cost" of goods and services (e.g. a T-shirt holds 4000 liters of virtual water, a chesseburger 6.5 gallons of fuel).
I have reviewed a number of books on climate change, in this book the author makes the very important point that the annual cost of weather disasters has been steadily increasing, and is the annual hidden "tax" on our reductionist approach to clearing the earth, losing the forests and mashlands, and so on.
He points out that concealing or ignoring true cost does not make it any less true, it simply passes the cost on to future generations. In the same vein he is optemistic in that he believes that if we take positive action now, however small, the benefits of that action as the years scale out, will be enormous.
This is actually an upbeat book for two reasons: first, it makes it crystal clear that the classical economics that have allowed corporations to pilage the world, bribe dictators and other elites, and generally harvest profit at the expense of the commonwealth; and second, it ends on a note of hope, on the belief that we may be approaching a dramatic cultural shift that embraces reciprocal altruism, true cost calculations, equitable wealth distribution, and so on.
He cites other authors but gives very positive insights into public ownership (by stakeholders, not the government), essentially repealing the flawed court-awarded "personality" of corporations, and re-connecting every entity to its land-base and the people it serves. He recommends, and I am buying, David Korten's "Post-Corporate World." By restoring the populace to the decision process, we stamp down the greed that can flourish in isolation.
The book ends hoping for a cultural shift from consumption to connection. I believe it is coming. Serious games/games for change, fed by real-world real-time content from public intelligence providers including the vast social networks from Wikipedia to MeetOn to the Moral Majority, could great a wonderfully distributed system of informed democratic governance that implements what I call "reality-based budgeting," budgeting that is transparent, accountable, and balanced.
This is a much more important book than its size and length might suggest. It is beikng read by and was recommended to me by some heavy hitters in the strategic thinking realm, and I am disappointed at the lack of reviews thus far. This book merits broad reading and discussion.
See also:
A Power Governments Cannot Suppress
The Unconquerable World: Power, Nonviolence, and the Will of the People
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
Escaping the Matrix: How We the People can change the world
All Rise: Somebodies, Nobodies, and the Politics of Dignity (BK Currents)
Imagine: What America Could Be in the 21st Century
The Cultural Creatives: How 50 Million People Are Changing the World
The Average American: The Extraordinary Search for the Nation's Most Ordinary Citizen

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Secrets of the Temple: How the Federal Reserve Runs the Country Review

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(More customer reviews)One might think of William Greider's "Secrets of the Temple: How the Federal Reserve Runs the Country" as "Central Banking for Poets." If you've ever scratched your head in wonder when reading how Alan Greenspan and the Fed have "lowered interest rates" or are "easing monetary policy," this book will be extremely enlightening and well worth the time it will take you to plow through all 700 plus pages. If (like me) you majored in economics, you'll be surprised how much better Greider is in explaining arcane economic theory than your college professors (and you'll probably learn -- or re-learn -- quite a bit in the process).
The focal point of the book is the celebrated and controversial tenure of Federal Reserve Chairman Paul Volker (1979-1987), but the mechanics of central banking so clearly and concisely explained are just as much applicable today as in 1980 - or 1950 for that matter.
Greider divides the book into three more-or-less equal thirds. The first covers the inflationary surge of the 1970s, Carter's tenuous decision to appoint Volker, and Volker's radical move of abandoning the control of interest rates in favor of controlling the nation's money supply. (In other words, a shift from the Keynesian orthodoxy dominant in the post-War period in favor of a monetarist approach more in line with the theories of the iconoclastic economist Milton Friedman.) The second, and most informative third provides an historical overview of central banking and its development in the United States. For those solely interested in a better understanding of central banking and the US Federal Reserve in particular, this book will be worth your while even if you only read this middle section. The final third deals with Volker's punishing monetary policy during the early 1980s, as he attempted to destroy lingering anticipation of inflation and the incredibly simulative effects of the Reagan era federal deficits and tax cuts.
Greider is highly critical of Volker's performance as Fed chairman. In short, he argues that far from being the independent and benevolent Shepard of the economy it often claims to be, the Fed, in practice, is beholden to its most powerful constituency: the major money-center financial institutions (i.e. Citibank, Bank of America, etc.). Traditional central bankers view combating inflation as their primary professional objective, which tends to favor creditors at the expense of debtors. Grieder suggests that in waging war on inflation the Fed in effect was waging war on the millions of ordinary Americans struggling to make end meets and keep their heads above water.
Whether you agree with his conclusions or not, Greider's "Secrets of the Temple" is exhaustively researched, expertly written, and extremely enlightening.

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A Geography Of Time: On Tempo, Culture, And The Pace Of Life Review

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(More customer reviews)"A Geography of Time" is an almost-excellent study of perception of time, and how this perception is affected by culture and location. A new vocabulary is introduced to the reader, along with a host of new ideas about time, including "event time," "natural time," and the familiar "clock time." The author's research is enlightening and challenging.
The concepts are easy to absorb, and the subject is well-researched and documented. I have no doubt that Levine's work is strong. Some of the work involves providing evidence for well-known concepts, such as bigger cities have a faster pace than smaller cities. Interesting correlations are drawn between the pace of a location and the accuracy of it's timepieces. I found the concept of being able to train oneself to elongate and condense time perception to be particularly interesting, such as in the case of a martial artist who moves fast by forcing an opponent to appear to move slow. Other interesting tidbits include the "contradiction of Japan," which shows that an ultra-fast paced life can be balanced out with cultural rules to prevent aggression, and how a slow-paced city is not necessarily kinder than a fast-paced city.
The reason why "A Geography of Time" is only almost-excellent is due to the author's skills as a writer. Ideas are not presented in a structured manner, information is redundantly repeated and personal opinions are freely mixed with research and evidence. Some difficult concepts, such as Einstein's time dilatation in Special Relativity are introduced as window dressing for what amounts to a sociological subject. A brief history of the introduction of clocks in America is included. The last chapter is almost a "self help" opinion piece by the author, on how to use knowledge of time to greatest advantage.
All in all, while the research is interesting and the concepts are worth reading, the book would have benefited from a tighter focus on the author's part. The book wander's lazily from concept to concept, and hurts the material overall. All in all, worth reading and enjoyable, but falling just short of the mark.

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America's Bubble Economy: Profit When It Pops Review

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(More customer reviews)You can give this book a pass. There's really nothing to it, so save your money. While one might agree wholeheartedly with its premise and conclusions, the exposition here is not the best. For comparison, take a look at Stephen Leeb's Chapter 5 in his "Oil Factor" of 2004 and you will see a much cleaner more informative discussion of just about everything in the "Bubble" book. Leeb is far more succinct and authoritative and manages to avoid what is becoming the most overused word in the language -- "bubble." And he does it in 11 pages.
The investment advice in this book, once you get past all the padding, is to buy gold and euros. The advice on gold at least comes with a cursory analysis of the supply and demand situation, but the advice on the euro is given without support. There's no discussion whatsoever of the economic realities facing the European Union and how they might impact the dollar/euro exchange rates. I'm not saying there isn't a good reason to run to euros, just that it appears nowhere in this book.
One of the other reviewers was as annoyed as I was about the poor editing in this book. In addition to misspelling Warren Buffett's name numerous times, including in the index, there is a general carelessness that made reading each chapter a hunt for mistakes. I expect more from Wiley.
If this is your first exposure to discussion of the multiple problems facing our economy from housing prices, government debt, consumer debt, and foreign exchange risks, it may serve as a readable introduction. However, don't expect too much depth and be prepared for typos and misspellings. A two star rating is pretty generous.

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Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance Review

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(More customer reviews)On a forum such as Amazon, book readers are free to write whatever reviews they like; but when they completely miss the point, throw in quotes out of context, and mistakenly ignore important sources of data used in a book, authors feel compelled to respond. In response to the review and exchange by "nycreader1", we suggest that readers should consider our clarifications below and also look at what we believe are more balanced and accurate book reviews provided in the Financial Times and Bloomberg:
[...]
The title "Guaranteed to Fail" refers to the fact that the GSEs took on the credit risk of almost 50% of the mortgage market with very little capital. It is also an intended pun as they were for all practical purposes guaranteed by the government.
With respect to the reviewer ("nycreader1")'s points concerning gaps and omissions, we beg to differ:
(1) The fact that the GSE mortgages were higher quality than others is discussed in the book, but unfortunately those mortgages were not sufficiently high given that the GSEs held less capital (much higher leverage), as confirmed by their eventually facing losses in the range of (at least) $200 billion.
(2) The government-sponsored hedge fund reference is only meant to describe their risk taking, with the focus on "government-sponsored" not just on hedge fund, nor to say that they were actually organized as a hedge fund. Their extensive use of derivatives to hedge some of their interest rate risk is consistent with that terminology.
(3) The reviewer's comment on interest rate risk is taken out of context. The book explains how analysts and academics missed the boat by not focusing on the credit risk of the GSEs' holdings and guarantees -- i.e., by not realizing that the mortgages were not sufficiently safe relative to the GSEs' (far too thin) capital levels.
(4) Our reference to the accounting scandals is made in passing and is used just to explain why their mortgage portfolios didn't grow. We are unsure why these scandals should be necessarily have been called "frauds". More importantly, we do make a compelling case that there were portfolio and leverage issues at the GSEs even post-accounting scandals.
(5) We do describe the GSE loan performance. The data used are primarily those of Fannie and Freddie themselves, and their regulator (the FHFA). We in fact went to great lengths to ensure our conclusions were consistent with their own data. We don't "rely" on Pinto's data (which the reviewer claims in a response to a comment) but offer it only as corroborative evidence (see pp. 37-38).
Of course, we had to rate the book to post this review and we have rated it as 5-star, but the point was to convey that we have researched hard on the GSEs before putting this book out,
unlike what the review by nycreader1 (mistakenly) asserts.
- Viral Acharya, Matthew Richardson, Stijn van Nieuwerburgh and Lawrence J. White, authors of Guaranteed to Fail

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Mismeasuring Our Lives: Why GDP Doesn't Add Up Review

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(More customer reviews)This is a very important book. Many people should read it. All who offer evaluations of how people are faring around the world, and every single politician and policy maker, needs to take its recommendations into consideration. The topic at first seems way too specialized for the general reader: why GDP -- gross domestic product, a monetary figure that claims to sum up all the goods and services produced in a country's economy and has reigned supreme as the most cited economic statistic -- is misleading as a straightforward indicator of human well-being. But this brief book is intended for a wide audience.
"Mismeasuring Our Lives" tells us, in clear, concise and non-technical language why GDP is a problematic measure, what other measurements we should use or develop, and why this is so important for all citizens to understand. The book is the report of a commission called together by French president Nicolas Sarkozy. The lead authors, who convened a broad and distinguished international panel of experts, are the Nobel Prize-winning economists Joseph Stiglitz and Amartya Sen, along with Jean-Paul Fitoussi, head of the French center for economic research. They begin by pointing out how much economic activity GDP leaves out, such as the work of a stay-at-home parent or the full benefit of government-provided health care. And GDP can be misleading: rising national output can still leave behind middle and low earners; China, despite authoritarian rule, can appear to be a "better" society than democratic India, if you just look at GDP per capita; France, with more guaranteed vacation time for workers, rates lower than the frenetic U.S.; selling more expensive, gas-guzzling SUVs raises GDP, but at the cost of raising global temperatures and reducing oil reserves.
The report suggests ways to rectify these problems, both using currently available statistics and calling for new measurements. But the commission clearly recognizes that measures of economic performance, particularly the GDP focus on market activity, do not equate to human satisfaction. So they call for a new and extensive move toward better understanding -- and measurement -- of the quality of life. A final third of the book seeks to do the same for sustainability -- how do we improve life for everyone now in such a way that we are not robbing from our children's future? As President Sarkozy points out: "We will not change our behavior unless we change the ways we measure our economic performance."

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In February of 2008, amid the looming global financial crisis, President Nicolas Sarkozy of France asked Nobel Prize–winning economists Joseph Stiglitz and Amartya Sen, along with the distinguished French economist Jean Paul Fitoussi, to establish a commission of leading economists to study whether Gross Domestic Product (GDP)-the most widely used measure of economic activity-is a reliable indicator of economic and social progress. The Commission was given the further task of laying out an agenda for developing better measures.Mismeasuring Our Lives is the result of this major intellectual effort, one with pressing relevance for anyone engaged in assessing how and whether our economy is serving the needs of our society. The authors offer a sweeping assessment of the limits of GDP as a measurement of the well-being of societies-considering, for example, how GDP overlooks economic inequality (with the result that most people can be worse off even though average income is increasing); and does not factor environmental impacts into economic decisions.In place of GDP, Mismeasuring Our Lives introduces a bold new array of concepts, from sustainable measures of economic welfare, to measures of savings and wealth, to a "green GDP." At a time when policymakers worldwide are grappling with unprecedented global financial and environmental issues, here is an essential guide to measuring the things that matter.

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The Return of the Great Depression Review

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(More customer reviews)Admittedly, I didn't know what to expect from this book. I am a frequent reader of Vox Day's blog, and do find his views on a variety of topics both insightful and thought-provoking. However, having read a number of "Doom and Gloom" predictor books in the past, only to have the author's assertions not only fail to come true, but their methodology proven eminently suspect.
The first thing that stands out about this book is the delivery. It's fluid, conversational, and devoid of economic jargon that permeates most books on the subject. The book also exhibits none of the haughty arrogance displayed in books more suited for overworked graduate students of economics than public consumption. The graphs illustrate and illuminate rather than confound and confuse. There are ample anecdotes used to illustrate Day's points. Having read von Mises' "Theory of Money and Credit", "The Anti-Capitalist Mentality", "Socialism", and Rothbard's "America's Great Depression", "Return of the Great Depression" is about as easy to read and understand as Hazlitt's "Economics in One Lesson".
As far as the book's content goes, it's thoroughly researched and uses cites numerous sources to illustrate his points. Though Day is a student of the Austrian School of economics, the manner in which he methodically examines the historical events and the personalities involved displays no trace of any personal bias. That isn't to say that the book itself is devoid of his own viewpoint, rather, it is to say that he makes it tacitly clear where the line between the "science" of his deconstruction of history ends and where his personal opinions begin. His expertise on economic metrics and their application is exemplary. In my opinion, the portion of the book that discusses the utter uselessness of economic metrics published by the government alone should be photocopied and given out to any student enrolled in an undergraduate economics course.
In conclusion, whether you're an ardent student of economics, or merely the kind of person who wants to learn a little more about how we wound up in our current economic situation and how to decipher what the media pundits are really saying about unemployment, CPI's, and GDP, you will find this book quite enlightening.


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In this sophisticated yet readable book, Vox Day - one of the few economics writers to predict the current worldwide financial crisis - explains why it is likely to continue.

Day shows that the policies being pursued in Europe, Asia, and the United States are very similar to Japan's failed policies of the past twenty years and, therefore, doomed to similar results. According to Day, the economic theories behind those policies are flawed and account for why most economists were unable to anticipate the recession or see that their expectations of an imminent recovery are incorrect. Day applies a different theory, the one he used to predict the current crisis, to show that the world is in the early stages of a massive economic contraction. Then he turns to the six scenarios presently envisioned by the world's leading economists and assesses which is most likely to unfold. As the title suggests, Day concludes that the most probable scenario is a Great Depression 2.0 that will be larger in scale and scope than that of the 1930s.

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The Fifteen Biggest Lies about the Economy: And Everything Else the Right Doesn't Want You to Know about Taxes, Jobs, and Corporate America Review

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(More customer reviews)Author Joshua Holland comes out swinging against the rhetoric and arguments that conservatives and Republicans have been inundating media and blogs with, in the past several years about the future and stability of our economy.
Holland takes fifteen topics, topics on taxes, jobs, corporations, free trade, illegal immigration, unions, healthcare, the deficit, minorities, and socialism, to name a few, and demolishes their arguments and charges that Republicans misinform the public to instill fear in the electorate.
For years, Republicans and conservatives have turned their message into an art form of slogans and falsehoods that do not stand scrutiny when Holland gives you the analysis, the stats, or the historical reality behind each of them.
Holland's prose is somewhere between strident and measured, but lucid and factual. He offers percentages and charts that are easy to follow and do not bore. He demonstrates clearly how corporations and lobbyists control the message and determine everything from legislation to trade agreements.
This is for the avid observer of the political struggle that is currently raging in this country. This is especially informative for the person whose political awareness is just germinating. The very well informed may wish to read this to recall things momentarily forgotten.
It is an alarming story and a depressing one. It is the story of our country being owned by the entities just described, how legislators do the bidding of their contributors rather than citizens, how our government does more to protect business than consumers.
What was just as important is what Holland didn't say. He was describing the slow strangulation of the death of a republic that was bought through avarice and greed with a powerful message of fear, and the perversion of a dream that belonged to our Founding Fathers.
I can give you fifteen reason why you might want to read this.
I also recommend the following:
The End of America: Letter of Warning to a Young Patriot
Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and StickYou with the Bill)
Over the Cliff: How Obama's Election Drove the American Right Insane
Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich--and Cheat Everybody Else
The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed Our Jobs, Pensions, and Prosperity'and What We Can Do About It


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AlterNet editor Joshua Holland demolishes the Right's biggest and most outrageous myths about the economy

Taxes kill growth. Labor unions hurt their members. Government regulation destroys jobs. These are just a few of the biggest lies in the web of misinformation spun by conservatives and the Chamber of Commerce. Holland's book dissects each malicious fiction to show how the Right is just plain wrong on the economy—wrong on jobs, wrong on the deficit, wrong on taxes, wrong on trade.
Takes down old and new conservative myths about the economy, including healthcare, stimulus, progressive taxes, Wall Street regulation, and more
Filled with recent quotes from conservative politicians and pundits, from the misleading to the laughable to the totally outrageous
Tackles specific aspects of the Republicans' economic agenda, including their 2010 alternatives to Obama's budget
Deftly written and rigorously documented by Alternet senior writer/editor Joshua Holland

With the economy set to be the driving issue before and after the 2010 midterm elections, The Fifteen Biggest Lies about the Economy sets the record straight on every part of the conservatives' economic agenda.

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Numbers Rule Your World: The Hidden Influence of Probabilities and Statistics on Everything You Do Review

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(More customer reviews)This book shows how statistical thinking works and how it's benefiting our lives. It's an easy-read book without a lot of jargon or, surprisingly, numbers. I found the book to be engaging - through the use of stories - and helpful in understanding something that otherwise could be quite dull.
"Statistical thinking is distinct from everyday thinking. It is a skill that is learned. ... many applied scientists routinely use statistical thinking on the job," the author says. Statistical thinking is also often counter-intuitive. And this was my biggest take-away from this interesting book.
Using the premise that we can learn statistical thinking and that we can apply it in everyday situations, Fung provides 10 stories to teach 5 big principles of statistical thinking:
1. Variability over Averages: Statistical average isn't the key, deviation from the average is.
2. Correlation over Cause and Effect: Cause and effect might provide rational explanation, but unexplained correlation is also useful and quicker to find.
3. Group differences over Group averages: Differences within groups are hidden by averaging groups together.
4. Errors are both positive and negative: Minimizing mistakes creates mistakes of a different kind.
5. The Impossible really is Impossible: Don't believe what is too rare to be true.
The stories are applications of these principles in things we're all interested in. Like, the shortest waiting time at Disneyland, finding the source of a deadly E. coli outbreak, financial credit scores, highway traffic meters, steroid testing in Major League Baseball, SAT test writers, lie-detector tests, uncovering a lottery scam, and the safety record of airlines.
If you liked Gladwell's The Tipping Point: How Little Things Can Make a Big Difference, you'll most likely appreciate this book too.

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WHAT ARE THE ODDS YOU'LL WIN THE LOTTERY?
How long will your kids wait in line at Disney World?
Who decides that "standardized tests" are fair?
Why do highway engineers build slow-moving ramps?
What does it mean, statistically, to be an "Average Joe"?
NUMBERS RULE YOUR WORLDIn the popular tradition of eye-opening bestsellers like Freakonomics, The Tipping Point, and Super Crunchers, this fascinating book from renowned statistician and blogger Kaiser Fung takes you inside the hidden world of facts and figures that affect you every day, in every way.
These are the statistics that rule your life, your job, your commute, your vacation, your food, your health, your money, and your success. This is how engineers calculate your quality of living, how corporations determine your needs, and how politicians estimate your opinions. These are the numbers you never think about-even though they play a crucial role in every single aspect of your life.
What you learn may surprise you, amuse you, or even enrage you. But there's one thing you won't be able to deny: Numbers Rule Your World…
"An easy read with a big benefit."—Fareed Zakaria, CNN

"For those who have anxiety about how organization data-mining is impacting their world,Kaiser Fung pulls back the curtain to reveal the good and the bad of predictive analytics."—Ian Ayres,Yale professor and author of Super Crunchers:Why Thinking By Numbers is the New Way to Be Smart
"A book that engages us with stories that a journalist would write, the compelling stories behind the stories as illuminated by the numbers, and the dynamics that the numbers reveal."—John Sall, Executive Vice President, SAS Institute
"Little did I suspect, when I picked up Kaiser Fung's book, that I would become so entranced by it - an illuminating and accessible exploration of the power of statistical analysis for those of us who have no prior training in a field that he explores so ably."—Peter Clarke, author of Keynes: The Rise, Fall, and Return of the 20th Century's Most Influential Economist

"A tremendous book. . . . If you want to understand how to use statistics, how to think with numbers and yet to do this without getting lost in equations, if you've been looking for the book to unlock the door to logical thinking about problems, well, you will be pleased to know that you are holding that book in your hands."—Daniel Finkelstein, Executive Editor, The Times of London
"I thoroughly enjoyed this accessible book and enthusiastically recommendit to anyone looking to understand and appreciate the role of statistics and dataanalysis in solving problems and in creating a better world." —Michael Sherman, Texas A&M University, American Statistician

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The Extra 2%: How Wall Street Strategies Took a Major League Baseball Team from Worst to First Review

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(More customer reviews)A hard one! There certainly are not a lot books out on the Rays, and any intelligent baseball book is well worth a read. However, as well-intentioned as this work is, and the fact that if you are a baseball fan you are bound to read it, I cannot give it a great review. Here are a few points:
First, there really is NOT much there. It seems like it would have been a better magazine article. There is heavy repetition that is not really needed.
There are no interesting secrets, no revelations, not even a real idea of how the team works.
Tropicana Field is heavily featured; the general discussion of stadium building is interesting but how many times can the author complain about the Trop? Really, I think a reader would "get it" early in the book.
The history of the team is interesting - perhaps a history of the Rays would be a better work.
Inevitably, this will be compared to Moneyball. Face it, the author's premise/thesis is designed to appeal to fans of that work. However, this work is nowhere nearly as involved, or as interesting as Moneyball.
You do not get a lot of player info; more of this would bring the story to life. Yes, there are some anecdotes, particularly re: Garza and Longoria but not enough to really get an idea of the management mindset.
Overall, I do not regret buying this, and do not want to dissuade you, but it could have really been something great. I feel that a great book could be written about this team, but this is not it. In the meantime, this will have to do.

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What happens when three financial industry whiz kids and certified baseball nuts take over an ailing major league franchise and implement the same strategies that fueled their success on Wall Street? In the case of the 2008 Tampa Bay Rays, an American League championship happens—the culmination of one of the greatest turnarounds in baseball history. In The Extra 2%, financial journalist and sportswriter Jonah Keri chronicles the remarkable story of one team's Cinderella journey from divisional doormat to World Series contender. When former Goldman Sachs colleagues Stuart Sternberg and Matthew Silverman assumed control of the Tampa Bay Devil Rays in 2005, it looked as if they were buying the baseball equivalent of a penny stock. But the incoming regime came armed with a master plan: to leverage their skill at trading, valuation, and management to build a model twenty-first-century franchise that could compete with their bigger, stronger, richer rivals—and prevail. Together with "boy genius" general manager Andrew Friedman, the new Rays owners jettisoned the old ways of doing things, substituting their own innovative ideas about employee development, marketing and public relations, and personnel management. They exorcized the "devil" from the team's nickname, developed metrics that let them take advantage of undervalued aspects of the game, like defense, and hired a forward-thinking field manager as dedicated to unconventional strategy as they were. By quantifying the game's intangibles—that extra 2% that separates a winning organization from a losing one—they were able to deliver to Tampa Bay something that Billy Beane's "Moneyball" had never brought to Oakland: an American League pennant. A book about what happens when you apply your business skills to your life's passion, The Extra 2% is an informative and entertaining case study for any organization that wants to go from worst to first.

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The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future Review

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(More customer reviews)Other reviewers have summarized the book in detail, so I won't. I'll just emphasize the bottom line:
Machines are fast approaching humans in terms of *mental* labor capacity, not just *physical* labor capacity. In the past as machines took over much of our physical labor, we were then free to turn to more valuable mental labor. But once machines take over much of our mental labor, then what do we turn to for employment?
The author makes a very compelling case that this situation will arise, and likely within the next few decades. And he also lays out some rather bold suggestions to delay the shock of the resulting high unemployment and allow us to transition to an inevitably new type of economy as smoothly as possible. Though, even with these suggestions, I expect this transition is not likely to be smooth.
This book is a very important, frank discussion of a pending time-bomb for our precious mass market economy. Read it and recommend it to others. And think about how you and your family and friends will manage the forthcoming transition.

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What will the economy of the future look like? Where will advancing technology, job automation, outsourcing and globalization lead? This groundbreaking book by a Silicon Valley computer engineer explores these questions and shows how accelerating technology is likely to have a highly disruptive influence on our economy in the near future--and may well already be a significant factor in the current global crisis. THE LIGHTS IN THE TUNNEL employs a powerful thought experiment to explore the economy of the future.An imaginary "tunnel of lights" is used to visualize the economic implications of the new technologies that are likely to appear in the coming years and decades. The book directly challenges conventional views of the future and illuminates the danger that lies ahead if we do not plan for the impact of rapidly advancing technology. It also shows how the economic realities of the future might offer solutions to issues such as poverty and climate change.

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Against the Gods: The Remarkable Story of Risk Review

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(More customer reviews)Against the Gods is an outstanding book about the evolution of risk and man's attempt to understand it. Bernstein begins with ancient times and traces the history of numbers and probability leading eventually to today's seemingly complex financial world of portfolio theory, derivatives, and risk management techniques. Readers will learn about revolutionary thinkers including John von Neumann (inventor of game theory), Isaac Newton, Harry Markowitz (grandfather of portfolio theory), and the late Fischer Black (Black Scholes option formula) among others. Readers will also find enlightening stories about game theory, fibonacci numbers, chaos theory, the bell curve, regression to the mean, and more. Yet despite all the intelligence, computer power, and sophisticated techniques, Bernstein presents us with the growing body of evidence discovered by researchers including the late Amos Tversky and others that "reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways human beings arrive at decisions and choices when faced with uncertainty." Against the Gods was chosen as one of Business Week's top 10 books of the year for 1996.

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