Description
Book SynopsisApplying the Lessons of History to Understanding Fraud Today and Tomorrow Financial Stability provides a roadmap by which the world can anticipate and avoid future financial disruptions. This unique discussion of past and present financial events offers new insights that explain economic, political, and legal antecedents of financial crises in Western markets. With a detailed discussion of the history of finance, this book shows modern investors and finance professionals how to learn from past successes and failures to gauge future market threats.
Readers will gain new insight into the antecedents of todays financial markets and the political economy that surrounds them. Armed with this knowledge, they will be able to craft a strategy that steers away from financial disorder and toward maximum stability. Coverage includes discussion of capital, forecasting, and political reaction, and past, present, and future applications within all realms of business. The com
Table of Contents
Preface
Introduction
Part 1: A Flight through Financial Market History—Freedom and Fraud
Chapter 1. The First Few Millennia
Chapter 2. The Bank of England and the Scottish Enlightenment
Chapter 3. U.S. Banking, from British Colonies to 1865
Chapter 4. Bagehot's Dictum (a.k.a. the "Greenspan Put")
Chapter 5. U.S. Financial Markets from 1865 to the Great Depression
Chapter 6. Depression, War, and Aftermath—Reflecting on Finance from 1929 to 1973
Chapter 7. Early Deregulation: The Transactions that Replaced Depression Era Thrifts
Chapter 8. Riskless Arbitrage—Stand-alone Collateralized Mortgage Obligations ("CMOs")
Chapter 9. Paradise Gained, Lost, Regained, and Destroyed—1992 to 2008
Chapter 10. Resurrection, Recovery and Reform—2008-2013
Chapter 11. Different Circumstances Require Different Solutions
Part 2: The Theory of Financial Stability
Chapter 12. Statement: Rule of Law + Freedom + Transparency → Equilibrium
Chapter 13. Saying vs. Doing
Part 3: Proofs of the Theory of Financial Stability
Chapter 14. Mathematics: (1 + i)x > (E = mc2)
Chapter 15. Law: Incomplete "Sale" ≡ Secured Borrowing
Chapter 16. Economics: Savings ≡ Investment
Chapter 17. Accounting: Assets ≡ Liabilities + Capital
Chapter 18. International Trade: Current Account Deficit ≡ Capital Investment — Domestic Savings
Chapter 19. Philosophy: Benevolence > Self Interest > Fraud
Part 4: The Future
Chapter 20. Achieving Wisdom While Avoiding Mistakes of Experience
Chapter 21. Capital Needs
Chapter 22. Sources of Capital
Chapter 23. Managing the Water Balloon
Chapter 24. Balancing the Bubbles
Epilogue: Truth and Consequences
References
About the Companion Website
About the Authors
Index
