5 comments about Capitalism: The Unknown Ideal.

1. This book contains an excellent collection of essays on the political branch of Ayn Rand's philosophy of Objectivism and is appropriate for anyone seeking to obtain a deeper understanding of her political philosophy beyond reading her novels. A few of my favorite essays contained within include:
   
   * What is Capitalism? -- Ayn Rand's delineation of Capitalism as a political system where individuals live according to the Trader Principle and have a minimal, but central government to prevent the initiation of physical force and fraud.
   
   * Antitrust -- Alan Greenspan's excellent essay that attacks Antitrust legislation as subjective, harmful and immoral.
   
   * Gold and Economic Freedom -- Alan Greenspan's essay on the need for objective currency. In particular, he suggests a return to a 100% gold standard.
   
   * Patents and Copyrights -- Ayn Rand's views on the necessity and morality of intellectual property rights.
   
   * Theory and Practice -- Ayn Rand's views on the invalidity of the "Mind-Body Dichotomy", which is also known as the "Theory-Practice Dichotomy" or the "Thought-Action Dichotomy".
   
   * The Wreckage of the Consensus -- Ayn Rand's views on the debacle that was the war in Vietnam. In my opinion, reading this essay really suggests how she would view the current war in Iraq.
   
   * Man's Rights -- in this essay, Ayn Rand discusses what individual rights are and where they come from. Specifically, she argues that rights come from the nature of man (not from divine origin, society or law) and what they mean in practice.
   
   * The Nature of Government -- this essay contains Ayn Rand's view on government's as an agency of force, how the only proper purpose for a government is to safeguard the rights of men, how the only legitimate functions of government are those necessary to preserve individual rights (i.e., police force, army and a court system) and the necessity for a strong, central government to serve as a final arbiter on the use of retaliatory force. This last point is in stark contrast to various anarcho-capitalists such as David Friedman and Murray Rothbard.



2. Ayn Rand, best known for her best selling fictional works outlining her own philosophy of Objectivism, presents a collection of thoughts on economics that provides one of the best explanations of laissez-faire capitalism available.
   
   Rand discusses the subject from a moral stand point which proves to be both refreshing and intriguing. Capitalism: The Unknown Ideal was my introduction to the Austrian economic school of thought and to this day, after considerable research on the subject, I cannot think of a better introduction.
   
   Rand, in combination with Nathaniel Branden, Alan Greenspan, and Robert Hessen, provides an admirable compilation of thought portraying the very essence of laissez-faire capitalism. The book is based on the founding principals of America and an understanding that "America's abundance was not created by public sacrifices to the `common good', but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes."
   
   If you resent the fact that your life is your own responsibility and no one else's, then you will not like this book. This will account for the less than perfect overall rating this book inevitably will acquire as there are many among the masses who just cannot accept that they might have to be accountable for their own decisions. Such thoughts clearly do not speak to the quality of the book, rather frustration with the ideals; an understandable and anticipated response to a book of this nature.
   
   Anyone seeking to understand the logical and objective ideals of laissez faire capitalists will discover all they are searching for with this book and I highly recommend this to readers and critical thinkers of all views of economic thought.



3. In my view, Ayn Rand's popularity during her heyday had much less to do with the quality of her writing or her thinking than the fact that the demand for writing in support of capitalism and individual liberty was much greater than the supply. She was born in Russia and was 12 when Lenin became the Soviet dictator and her father lost her pharmacy. When she finally arrived in 1926, she stayed and got some work in Hollywood as an extra and a script reader. She wrote some scripts and published her famous novella "Anthem" in 1938. By mid century she published the best selling books "The Fountainhead" (1943), which became a movie with Gary Cooper and Patricia Neal in 1949, and "Atlas Shrugged" (1957). She attracted a great deal of attention from the public and gathered some talented disciples.
   
   This book is a collection of essays by Rand as well a few of her more compelling disciples such as Alan Greenspan (yes, that Alan Greenspan), Nathaniel Branden, and Robert Hessen. The focus of this book is on the morality of Capitalism and, in my view is a mixed bag. Of course, I think that of all of Rand's writing. She is a compelling polemicist when attacking collectivism and on the righteousness of economic freedom and political liberty. When she extends her thinking to matters such as religion, altruism, copyrights, and patents things get much weaker. In other words, she is compelling the first few steps in arguing for capitalism, but when trying to use her ideas to create a society she becomes to narrow in her views. Her "objectivism" and focus on self becomes a hammer she uses to hit everything else as if it were a nail.
   
   Rand is still influential and controversies still surround her life and thought. For many people, she is a phase they go through when first coming to understanding their rights as individuals and free economic beings. However, few stay with her thinking for a long period of time. Some do, but most do not. I don't think you can recognize the Alan Greenspan in these pages with the policies he espoused as Chairman of the Fed (regardless of how you regard his tenure).
   
   If you are interested in Rand's political writing, this is a decent read, but I advise you to bring more than a pinch of salt as you read it. While some of her writing is powerful and persuasive, make sure you consider its implications before you jump on her bandwagon.
   
   Personally, I much prefer the conservatism of William F. Buckley Jr., Russell Kirk, and Whittaker Chambers, to name just a Conservatives who did battle with her during her period of greatest fame. Do NOT let anyone try to hang her around your neck as a foundational conservative thinker. She is not. She considered herself her own school (and her claims to being the greatest philosopher of all time have only become more laughable as the decades pass) and is not part of the conservative mainstream in American political thought. Reagan came out of Kirk and Buckley much more than out of Rand.
   
   Reviewed by Craig Matteson, Ann Arbor, MI



4. She certainly makes the case in a true poetic fashion. This collection of essays shows how brilliant of a thinker and writer Ayn Rand was. How she is able to expose the moral fallacies behind the current altruistic/collectivist philosophy is amazing. She puts into words the many things I believe many of us feel inside but don't really know how to express in words, or have been conditioned to suppress by our culture and schooling.
   This is quite an educational piece of literature. All to often, free-market and freedom advocates fail to make the moral case. They make the mistake of defending freedom and Capitalism from an altruistic perspective- it is the best economic system for the common good. But this is a mistake, as Ayn Rand points out, while that fact is ture, it alone is secondary to the fact that Capitalism is the only political/economic system that is compatible with individual rights. That is its true moral virtue.
   The Amazon editorial review is a disgrace! It is not an objective review, but a personal ideological attack. The statements made in that review are baseless and no attempt is made to justify them. Amazon should be ashamed!



5. This is a great followup read to Atlas Shrugged! Atlas should impart a great knowledge of Rand's philosophy of life first, and the superb essays in this book should cover a lot of the more practical issues associated with free market capitalism. Its a good one-two punch to gain a greater understanding of politics and philosophy. I highly recommend this book.

5 comments about Globalization and Its Discontents.

1. Anyone with an interest in global affairs would be aware of the East Asian crises and the Russian attempt at becoming a market economy. These are the two main examples used by Stiglitz to frame his arguments and the policies are well known. They are the same problems the anti-globalization movement protests against outside various international financial meetings so there are no new insights here of any great significance. Some of the less prominent countries like Ethiopia and Malaysia are covered though and these sections are interesting although still using the same themes - co-ercive IMF tactics, capital market liberaliztion or protectionism etc. Stiglitz also contradicts himself at times. In one section he argues for greater transparency and public debate (ie. politicization) of the IMF's policies, then in another criticises the U.S. government for enacting protectionist measures domestically (assuredly for political purposes).
   The problem with these 'insider' accounts is that they are by definition subjective. The only examples of the inner workings of these institutions put forward are self-serving anecdotes of when Stiglitz himself opposed, or tried to oppose, IMF policies. There is also very little talk, and even less criticism, of the World Bank which is where he was the chief economist. Would recommend a book by, say, a respected professional journalist who can be a more objective, more dispassionate, and much more coherent.



2. "Globalization and Its Discontents" is an impressive critique of the Washington Consensus and international economic institutions. Even more so because the author is not only an eminent economist, but also an insider on the issues that are being discussed. Some of the things it covers are the historical context, the East Asian financial crisis, and Russia's transition from central planning to a market economy. Stiglitz demonstrates how a combination of unwillingness to consult, market fundamentalist ideology and financial interests led to terrible outcomes. Everyone who has taken an introductory macroeconomics course will be surprised to find out that the IMF pushed contractionary policies during downturns. The Russian experience underscores the importance of cautious and contextual policies that create the institutions necessary for a market economy. Besides retrospective insights, Stiglitz provides a list of alternative policies that could yield a much better result in the future.
   
   It may be less revolutionary now than it was in 2002: many mainstream economists such as Dani Rodrik have come out against the Washington Consensus since and the influence of the IMF seems to have decreased prompting economist Dean Baker to say that "No one needs the IMF anymore" ("The IMF: A Sandbox to Play In", April 10, 2007, Truthout). It may also have its share of flaws, most notably a somewhat naive sounding belief that getting closer to the free trade ideal (which includes cutting subsidies to agriculture so that the poor countries could better compete) will help developing countries a great deal. Many developing countries are in fact net importers of food and cutting agricultural subsidies in rich nations might actually increase prices that they pay for food. Nevertheless, "Globalization and Its Discontents" is an accessible and very interesting book that provides lessons about the need for open dialogue and contextual approaches to development. Not to forget that with the impact that this book has had it is also already a piece of history.



3. It should have been subtitled: "Or how the IMF screwed everything up, despite Joe's best efforts."
   
   It's a tiring tirade.



4. I don't doubt that Stiglitz is right. People with a background like that and have won the Nobel Prize usually know what they are talking about. But man this book is frustrating in the first few chapters. I initially categorized it as anti-western propaganda because it is extremely opposed to western policies. However, it is right. The economics of it are sound, the politics also make sense and the details of this are all laid out. You definitely need some economics knowledge to get through it and it makes a VERY good case against market fundamentalism and excessive deregulation. Unfortunately, the same market fundamentalism that drives the IMF is also what drives Wall Street and the Treasury and it's causing a lot of problems nowadays.



5. In 2001 in 'Globalization and It's Discontets' Joseph Stiglitz wrote about unregulated markets and financial institutions running amok in the developing countries with the backing of the IMF. Rather than creating jobs and upping demand in a recession the IMF was intervening to assist financial institutions, often Western financial institutions, make a buck with disastorous results for the people of the developing countries. Another huge point of Stigitz's is that a functioning regulatory environment has to be present for markets to work. This requires that interventions be staggered in time rather than delivered via 'shock therapy'. Stiglitz points to the lack of a regulatory environment as a basic cause of corrupt and mafia-like elements gaining control of the Russian economy upon shock therapy being applied to Russia. Stiglitz's book is about the developing world but the lessons of the book about the dangers of unregulated markets and financial markets gone wild are all too clearly applicable to the US as recent events have shown. The main point is that both government and markets are required. Markets aren't machines that can run alone but require maintenance. One can only hope the lessons Stiglitz delivers here have finally sunk in.

5 comments about Rich Dad's Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors.

1. This book does for real estate investing what Pimsleur does for language learning: it teaches you to speak the real estate language, to ask knowledgeable questions, and to make informed decisions.
   
   I have been through dozens of books, tapes, and CD programs on investing in real estate. Some are strictly motivational with little useful information. Others are like reference works and cannot be read from beginning to end. Still others hope to be meaningful forever and so dare not give you anything too current, or disputable and likely to change. Lechter and Sutton, however, wrote a book to turn a dreamer into a real estate investor. If that's what you still want at the end - but you have all the info to make the decision. Other reviewers might say that there are no "secrets" in this book - true, I suppose - but if YOU don't have a tutor for the subject, then for YOU common knowledge is a secret!
   
   The authors give separate advice for dealing with primary residence and for investment properties. Most other books blur these separate cases. Special cases where individual state law might differ from the general situations are pointed out. Case studies and repetition are used throughout - much like Pimsleur uses conversation in each language lesson. The reader brings everything learned earlier to each case, but is stretched just a bit to see why each case is unique. Each chapter builds on prior chapters. Included is the required amount of math, but this is clearly not a math book. On the contrary, it is an enjoyable read cover-to-cover. Some of the material is current as of 2006 and this is clearly noted. I hope this book gets updated every few years.
   
   While technically part of the Rich Dad series, the book stands on its own. The reader is fully aware of the few tacked-on references to the Rich Dad philosophy.
   
   This book is a must-read for anyone thinking about a career in real estate investing in all its forms. Consider it the second book you read - after something like "Home Buying for Dummies."



2. It certainly should be in your library. You're sure to find at least one or two nuggets that will more than pay for the book.
   
   Perhaps you'd like to look into this one too:
   
   The WealthLoop Series Beginner's Guide to Building Wealth Buying Houses: The Foolproof Roadmap to Real Estate Riches Without the Risks and Hassles of Landlording.



3. What can you say? It's another rich dad book. Very informative and written primarily by professionals with an in-depth view. The book is a good read for anyone. It gave me a lot to think about and some things to discuss with my team. No dull spots in this book. Read it cover to cover in a few days. Worth reading twice.



4. I bought my first property just before I purchased this book. I received it just before an international business trip, and didn't get any sleep on the flight because I was pouring over the basic concepts and ideas that fill this wonderful book.
   
   If you are already in real estate and know the basics, you may not need this book. If you already have your team of advisors and know who to go for when you have questions, you may not need this book. If you understand the differences between LLCs and LP and why one is better in California than in Nevada, you may not need this book.
   
   For most beginning real estate investors, this book is just the right amount and just the right speed to get started. Garrett and Sharon don't look at the buy-and-flip models, but rather at the advantages of staying in real estate, building a portfolio, and intelligently upgrading your properties (1031 Exchanges). They also go over the long-term planning aspects of inheritance and how to move your properties to family members with minimal taxes. They don't profess a silver bullet, but rather a rational plan to financial success through real estate.
   
   Verdict: Highly recommended.



5. Informative especially if new to the field. Gives basic legal and personal implications of real estate: i.e. how to get tax benefits for couples with high income (if one is involved in real estate); options for type of real estates, etc.

5 comments about Stock Investing For Dummies (For Dummies (Business & Personal Finance)).

1. I liked the book and thouht it was really good, some stuff I didn't think about was menioned in this book, even though its for Dummies :-)



2. It has basiclly very much everything to know about stocks. For newbie like me, I'm glad that I got this book. It shows u from buy to sell stocks and what matters would happen.



3. Time is an important asset. Invest your time in this excelent masterpiece, it will be your first good investment of many.
   
   Two considerations:
   
   Specalutors are not welcome here, this is pure investment for dummies. Aggresive tactics only in a conservative macro-enviroment.
   
   Investment could be very hard if you like, but like all things in life, it is best to keep it simple. Paul's book will be always in your hands when your strategies became too complex, heping advanced investors return to the basics.
   
   
   (Sorry for my english, is not my primary language)



4. A very good book. Makes that mysterious 'stock market' less mysterious. Now on to make money with my new found knowledge!



5. I usually am not too fond of these "dummy books" but this one has really, really been done right! This is a book that will take a beginner value investor right up to making smart choices in stock investing. Paul Mladjenovic (the author) has given us one of the finest books on the stock market, and stock investing that I have read and I've got most. For the beginner, or the person who has been investing for a while and wants to learn more this is the ultimate book to get to start with. For those persons I rate this book a high five as others do. I constantly return to this book to remember something. This book is a source you will never disgard.

5 comments about High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading).

1. This is a clear and concise book which gets to the point and sticks to it. The method taught combines momentum, pattern, price and time to present a trading plan which is easy to understand and trade. The second section puts the theory into practice while giving plenty of useful tips on how trade.
   I imagine that one of the real keys in this method is to prevent you entering trades at the wrong time so you avoid losing money too often.
   The book is illustrated with many examples of real trades and the addition of a dvd full of examples is a real plus.
   This book is great as both an introduction or an addition to any traders library.



2. An absolutely excellent book (and video CD) on trading. It covers how a trade is properly structured (setup, trigger & follow-through) step-by-step with no nonsense. The author uses multi-timeframe momentum, patterns (probable position in elliott wave), price (fib-price retracements, extentions & projects), and time (fib-time retracements, projects & cycles) to setup trades. After the setup, two entry strategies are defined along with initial stops to get you into the trade, objectively! Exit strategies and trade management are throughly covered to complete the trade life-cycle. The book even covers position sizing (money management). The icing on the cake is the video CD which details the concepts visually bar-by-bar. This is a very parctical book on trading and the author gets an A+ for a job well done.



3. Book is easy to read and understand. Excellent detailed instructions on how to determine trade setups, entry points and exit points.



4. Not only is the book's title plagiarised from Marcel Link's book, but the same rehashed information (and I am using the term loosely here) can be found in better books and on the net (for free).
   
   Save your money and time. Best left on the shelf were you found it.



5. I've studied Robert Miner's work for quite some time. Dynamic Trading is a great book, the "go to resource" for an enormous amount of info regarding Fibonacci price and time analysis. I refer to that book, the author's previous work, quite frequently. Several things stand out about this new book though. Mr. Miner takes you through chart setup, comparing probabilities for trade follow through based on more than 1 time frame (an essential as far as I'm concerned), and shows practical methods of trade entry and management. Something else that's pretty major is that purchasing this book entitles you to access updated videos on a special website, allowing for continued education based on current market examples. If you're new to the field of Fibonacci based market analysis I highly recommend this work for its combination of great information provided in a readable and conversational tone. If you've been around for awhile and studied the field as I have, you'll find fresh ideas by focusing on the multiple time frame approach, and the overview of Fibonacci ratios applied to the time axis of your charts. Great job Bob!

5 comments about Macroeconomics.

1. If you are buying this with "Microeconomics", as Amazon suggests, save yourself money and buy the book "Economics" by the same authors instead.
   
   As far as I can tell (I own Economics, thankfully not the separate books) it includes everything in each of the books, but in one book. See my longer review of "Economics" on Amazon.
   
   Instead of spending 2 x $100, the single book is $123.



2. Amazon is terrible about taking forever to ship....if you need any book in a hurry don't order from Amazon.



3. This is a great product, exactly what I needed for my Economics class. The item was shipped promptly and was in great condition when I received. I have absolutely no complaints regarding this product. Thank you.



4. seller never responded to emails and several weeks after buying book still have not heard from seller or gotten the book.



5. The way the product was described is the way it came. I recieved the book within 10 days tops. Great condition. Very satisfied!

5 comments about The Economics of Money, Banking and Financial Markets, 8th Edition / MyEconLab / eBook 1-Semester Student Access Kit.

1. Well I took the Financial Markets course at my university, both of my professors are very good at conveying information. Then when I read this textbook, man all the things in my head were messed up. This textbook is kind of Reviews of Money, Banking and FN Markets. It never really add more information to your brain if you have already taken couple of FN courses. I do recommend Financial Markets and Institutions by Jeff Madura or Money, Banking and Financial Markets by Stephen Cecchetti. Those guys are easier to read and follow.



2. I am a student in Romania and I always feel uncomfortable about spending the 20 dolars needed to pay for some of the coursebooks that our teachers recommend. I always feel that i'm probably going to toss any coursebooks in the attick once i'm done with it. But after reading a few excerpts from Mishkin's book, I felt like spending six times the amount would be a worthwhile investment. And I have not regretted it since! It is an excellent book for anyone looking to learn more about modern financial systems and finance in general. The fact that makes it such a great book is that mishkin actually wants you to understand what he's taling about by using an accessible vocabulary and lots of examples.



3. This is a great option for those being introduced in the Financial Markets Area. Very complete and easy to understand. Great Choice!



4. I cannot review this item because, after ordering it over a month ago, I have yet to receive the book. In addition, the seller has not been returning my email requests for the shipping information



5. Extremely useful for Economic and Finance Majors/pursuers. I call it a Pre-Corporate Finance book. It teaches you the basics in financial instruments such as valuing bonds, portfolio theories, foreign exchange market, and also how to read the WSJ (Wall Street Journal).

5 comments about GREENSPAN'S BUBBLES: THE AGE OF IGNORANCE AT THE FEDERAL RESERVE.

1. The author attacks Alan Greenspan for setting interest rates too low and thus causing all out economic problems. Why did Greenspan do this? He did not see the bubbles (that he himself created) because he was blinded by the "concept of technological driven productivity miracles." The author repeats this idea many many times. But from reading the first five pages you might wonder if Mr. Fleckenstein is the best person to launch a bubble attack like this. On page 3 the author leads you to note 2 (page 189) where he writes: "Determining that a bubble exists is somewhat subjective, though not terribly difficult." A couple of pages later on page 5, the author admits: "I saw the stock market bubble building and concluded it would end in disaster -- about four years too soon!" Should Fleckenstein not have disqualified himself from documenting forecasting failures at the Fed at this point? Taking strong action to stop a bubble based on the author's forecast could have driven us into a deep recession. In these first pages Fleckenstein proves with personal experience the validity of Greenspan's statement on page 99: "I don't think we can know there's a bubble until after the fact. To assume we know it presupposes that we have the capacity to forecast a imminent decline in prices." On page 162 in a confusing paragraph Fleckenstein seems to agree with this by writing: "What would be correct to say is that one can't exactly know what action might be required to stop a bubble." This not say that Mr. Greenspan is blameless.
   The author quotes his column from 1999 to judge Greenspan without the benefit of hindsight. In this column he writes that the increases in stock prices are "breathtaking" but never uses the word, bubble, before it burst. He uses the word, bubble, in column on September 17, 2001 after it is bust. Even I did better than that. In my book, "How to Invest in Condominiums" I use bubble twice and tell my readers how to to avoid them (I finished writing the book in 1999). Yet Fleckenstein is the one who has the nerve to attack the FOMC for not using the word often enough. This book is all about criticism with the benefit of hindsight. There are no lessons learned. We have to take it on faith that tighter money applied here and there would have been better. He does not attempt to demonstrate his forecasting ability and help Chairman Ben Bernanke by telling him how big the bursting real estate bubble is and when it will hit bottom, so that the Fed can set the "correct" rate. But no, on page 184 the author indicates that Ben Bernanke would make the same decisions as Greenspan. When we finally know how big and bad the real estate bubble was, say in 2013, Ben Bernanke (if he is still there) and the FOMC are sure to get flack from Fleckenstein for allowing the bubble to end so badly. The FOMC will be unaware of this incoming flack or wisely ignore it. This negative evaluvation (or well documented rant) deserves three stars for providing an insight into how difficult the task the FOMC has is and why in the long run the value of our paper money will always erode.
   
   
   



2. In this fascinating book, financial journalist William Fleckenstein studies the record of Alan Greenspan, chairman of the Federal Reserve from 1987 to 2006.
   
   Between 1937 and 1987 there were no bubbles, but Greenspan helped to create two bubbles in ten years - in stocks and then in real estate - by holding interest rates too low, punishing savers. He helped to make the American people worse off by redistributing wealth to the rich, the bubbles' boosters and sponsors.
   
   Greenspan viewed new technology expenses as assets. So he thought that productivity and profits were higher than they really were, that inflation was overstated and that stocks were understated. In 1998 firms spent $95 billion on computers. After Greenspan's `hedonic adjustment', this came out as $352 billion, adding 2% to US GDP.
   
   Governments want to understate inflation and overstate growth, productivity and incomes. So now, most price rises seem to be way above the rate of inflation.
   
   Greenspan's rate cut of 15 October 1998 triggered the stock market bubble. By 1999 the stock market was valued at 180% of US GDP. (In the last bubble, in 1929, it was 85% of GDP.) In 2000-01 this bubble burst - the new technology miracle proved to be a mirage. In 1992-99 there was zero productivity growth in 99% of the US economy, and growth only in 1%, computer hardware.
   
   In 2001-03, housing `saved' the US economy from the aftershock of the stock bubble. De-regulation led to lower lending standards with more `creative' financial instruments, like the $500 trillion worth of derivatives, which Warren Buffett described as `financial instruments of mass destruction'.
   
   So from 2003 to 2007 there was a real estate bubble, based on huge debts. Mortgage-equity withdrawals created half US GDP growth between 2001 and 2007. By 2006, household debt was 97% of GDP: mortgage debt was $13.3 trillion. Total US debt in 2007 was 325% of GDP.
   
   This ocean of debts rested on a falling real estate market, a sinking economy and a weak currency. Where could the next economic rebound come from? Capitalism has destroyed production and destroyed the housing market: it is running out of options.



3. Greenspan will be forever linked to the global financial meltdown of 2008. History will not be kind to the Bubble Boy.



4. This is a truly invaluable book. Fleckenstein shows,beyond any doubt, that Alan Greenspan has been a disaster for the country and the economy. Even before becoming Fed chairman, Greenspan had demonstrated his incompetence (Read the beginning where Greenspan's predictions as one of President Ford's advisers would drastically miss the mark). Unfortunately, Greenspan would be confirmed as Fed chairman and begin a nearly twenty year career of gross mismanagement.
   
   Fleckenstein quotes Greenspan repeatedly, demonstrating the Fed Chairman's inability to predict the stock market or housing bubble (or anything else for that matter). Greenspan comes off as completely incompetent in Greenspan's Bubbles. Perhaps some day the Federal Reserve will be abolished and the economy will not be subject to the whims of mediocre men like Greenspan and Bernanke. If that day comes, it will be because of thoughtful experts like this book's author. I also recommend Ron Paul's analysis of Greenspan in his recent book--Paul points out that Greenspan once supported sound money but changed his views as the lure of great power as a central planner seduced him.



5. This book is a disappointment. For the happy few it might be an interesting read, but for someone intereted in the general ramifications of the Greenspan era it is a huge dissappointment.
   The book seems to be a blow-by-blow vendetta of the author against Alan Greenspan. And while the author clearly has an authority on the whole subject, he fails to engage his reader by not clarifying the details on why he rants againts Greenspan. Sometimes too much knowledge can be a hindrance.

5 comments about The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics.

1. I understand that it's a book written to be accessible to people like myself who are not economists and will NEVER be economists, but that does not mean I have to be treated like I am severely unintelligent. The reading level of this book falls far below what any college educated person should be expected to read. I don't think the author of this book is nearly as deserving of the high accolades (not to mention profits) he has been receiving for writing this book. When a book contains the phrase 'I think learning under the right circumstances is a very good thing' you know that the quality of the writing is deficient. It is elementary at best.



2. The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics by William Easterly is an honest answer to part of the question, "why hasn't the world improved like we thought it would?" Easterly conducts a post-mortem conference on western aid programs since the end of World War II, finding that in many cases we should have known better. The incentives created by some nations' economic environment, or the aid programs themselves led national economies into periods of stagnant or negative growth. Easterly's mantra is "people respond to incentives." Ignoring this truth, a central tenet of economics, has led to several irrational choices in the area of development aid, and many failures to achieve our objectives.
   
   While pessimistic at times in his evaluation of what we have done in the West, the truth behind the text is that all these problems are preventable. Overall, a valuable and essential piece of information in understanding the state of the world today in regards to differing economic outcomes and how it has come to be that way.



3. Easterly is a brilliant and talented writer, as one would expect from the World Bank. At times, though, the Bank is isolated from the benefits of being subjected to such talent. Individual efforts are certainly reviewed, but at the end of the day, Stiglitz and others have argued that the very points Easterly makes suggests that the Bank is far off the course set by its mandate. We are therefore left with yet another recommended "fine tuning" of WB programming without a serious reflection over whether the WB is the proper mechanism for fiddling with the intricate clockworks that are national economies. I sign off by asking the Americans, Britons, Australians, French, Swiss and others from "developed" countries what it would take to allow an autocratic, bureaucratic and politically un-accountable (and this series of adjectives in no way lessens the tremendous respect I have for nearly every WB staff member I've met) organization tip-toe into THEIR administrative systems. I argue that the problem with economic tinkering in the Pacific is that it is, and looks to remain, the product of bureaucratic meddling on a scale similar to Mao's China, which undermines both the development of governance systems that can curtail corruption (i.e. local acocuntability for performance based on available resources- NOT (!!!!!!) in any way similar to efforts to make local authorities better subsidiaries of the notably corrupt central governments as is currently being pushed in the Pacific and elsewhere) AND legitimate free market systems. This book is a fantastic read, and I highly recommend it be paired with Stiglitz's "Globalization..." and Jeffrey Sach's "End of Poverty..." for a very ponderous but enriching book club series.



4. Watch Video Here: http://www.amazon.com/review/RN4QXC248QBRO Nathan Kirkland's review was made as part of a critical review assignment for the Fall 2008 Honors Colloquium on Creative Destruction at the University of Nebraska at Omaha, taught by Art Diamond. (The course syllabus stated that part of the critical review assignment consisted of the making of a video recording of the review, and the posting of the review to Amazon.)



5. The Elusive Quest for Growth, precisely lists the main reasons why slow or negative growth per capita has plagued emerging economies. Its thesis statement: people respond to incentives, brilliantly proves how many traditional ways of dealing with low growth economies is misapplied by bad government policies. The book is well structured and develops with great ease. The book is perfect for social entrepreneurs and economists.

5 comments about Stocks for the Long Run, 4th Edition: The Definitive Guide to Financial Market Returns And Long Term Investment Strategies.

1. Recently published (end of 2007) very helpful to give an overall view of the world stock markets, with enphasis on the american market of course. In my opinion it gives a helicopter view of the economy and the stock market movements and in doing so it provides you with a map of the "territory" you are moving in (as it were). Great statistic amount of information.



2. Siegel's masterpiece is a must buy for anyone who wants to stop wasting money on mutual fund fees and start accumulating wealth. I give this book and Professor Siegel an A+.
   
   Andrew Nissenbaum



3. Dr. Siegel, one of the top academics in finance, has provided a comprehensive, up-to-date overview of investing in stocks. His book is based on data going back 200 years and is fact based, rather than just opinions or theories. I have been involved in investing for over 30 years and found much new, useful information. This book is a great read for anyone interested in stock investing, whether a rookie or a veteran.



4. In the previous editions of Stocks for the Long Run, Wharton Finance professor Jeremy Siegel offered a thoroughly bullish take on the merits of equity investing that has proved highly influential and largely correct through the end of the post-Millennial Bull Market in mid-2007. In the latest edition of this classic, released in a much more difficult period of substantial market declines, Siegel has added important and more nuanced insights derived from his previous and somewhat overlooked book "The Future for Investors," which came out in 2006. Siegel's basic advice to stock investors is to focus less on growth stocks and index mutual funds (eg., Vanguard 500) and more on looking for tried and true stocks that pay high dividends. He argues that such reinvested dividends are the true source of stock returns, or the "El Dorado." (His term). Overall, this argument is well-presented and persuasive.
   
   However, I am perplexed on a key element. His case is largely based on historical evidence that purports to show that high dividend yield stocks, with dividends reinvested, have accumulated more total return than growth stocks or index mutual funds. However, his calculations do not account for the deleterious effect of taxes on reinvested dividend. (He says in an endnote that taxes are not significant for the portfolios he chose, but does not explain why; for most common stock portfolios, taxes are significant.) Dividends are taxed yearly and until recently at a higher rate than that of capital gains and that of retained earnings, which are not taxed at all. If taxes have been paid on dividends, only the untaxed part can truly be considered "reinvested"; the part that is taxed has to be made up by a new infusions of cash from the investor. The effect of ignoring this is that his historical comparisons are not terribly meaningful because he is not calculating the returns on true (after tax) contributions to dividend stocks vs. growth stocks. Naturally, if more is contributed to the dividend stocks, there is likely to be more at the end. (BTW, this is basically the same fallacy that sunk the allegedly huge returns of the otherwise delightful "Beardstown Ladies" of yore.) Given that the magnitude of the "advantage" he posits of dividend stocks vs. growth stocks is not all that great, one cannot have confidence that he has truly made his case.
   
   That said, his advice is very useful for investors in tax sheltered 401Ks. Also, the new lower tax rate on dividends also helps lessen, though not eliminate, the effects of yearly taxation of dividends.
   
   In addition to emphasizing the importance of the contribution of stock dividends to equity portfolio performance, this book also grapples with a perplexing challenge to Siegel's original stocks for the long run mantra, the much vexed question of what will happen if and when the populous Baby Boom generation attempts to cash in its stock and bond retirement portfolios by selling them to the smaller demographic of Gen X and Gen Y. An entire school of catastrophe futurologists, most notably Harry Dent, but also more mainstream voices like Peter G. Peterson (The Grey Wave) have warned that this so-called Age Wave is about to wreak havoc with stock market investments. In this book, Siegel does not dismiss this issue, but deals with it in a logical and generally less alarmist point of view. At the risk of oversimplifying a complex analysis, Siegel's bottom line is that while it is true that there are not enough younger generation Americans to absorb the Boomers stock and bond assets at current prices, investors in emerging countries, like China and India, will more than make up for that and will end up buying the Baby Boomer's paper assets as the Boomers sell them off to fund their retirements. The upshot is that foreigners will end up owning a lot of our companies by the year 2050. A potential snag, says Siegel, is whether America will be willing to let this happen, or will pass laws or adopt polices to discourage the transfer of US assets to foreign countries. This remains to be seen, but he is optimistic. On the other hand, the implications for the typical Baby Boomer's most important asset, his or her house, is rather dire, because homes can't be sold as readily to foreigners, for obvious reasons. Siegel doesn't provide an answer for the housing market, which is outside the scope of a book on stock investing in any event. Overall, this remains one of the best written and most sensible investment books available today, now offering a more nuanced and even more helpful sets of advice than the previous editions. With new information and analysis, this is well worth owning, even if you have a previous edition.



5. Holding stocks for the long run is a totally sound idea -- as long as you get in at the right time! Buying stocks after the 1929 Wall Street Crash, holding them and reinvesting the dividends, would have been a great idea. Buying stocks immediately prior to the crash, and holding them all the way down, would not have been so smart. More recently: buying stocks in mid 2007, and particularly financial stocks that had apparently good fundamentals, and holding them through the massive decilnes would also not have been too smart. To be fair, this book does allude to the importance of timing in its talk of Raskob in Chapter 1 -- but then more-or-less dismisses it.
   
   I'm interested in the value investing vs. market timing trade-off, and so I explored it myself using real data in Stock Fundamentals On Trial: Do Dividend Yield, P/E and PEG Really Work?. I took a much shorter (recent) timeline than Siegel, so a direct comparison is not valid. But I justify this because most investors, despite their best intentions, will not hold stocks that fall in price unless the fall is very temporary. So they're market timers after all: it's just that they time their exits (badly) and don't time their entries at all.
   
   I agree with Siegel's charts that show how well stocks have performed over the decades. In fact, I included a chart (figure 38) in Financial Trading Patterns showing how a buy-and-hold approach would have beaten market timing over a 23-year span to October 2007. But my point is this:
   
   If I had the data, I could perhaps draw a chart showing the continual rise of horse-and-cart production over hundereds of years. But it all came to a swift end when Henry Ford appeared on the scene. Holding Stocks for the Lun Run can work, and it has worked. But we can't guarantee that it always will; and it will take you a long time to find out either way. Or, you'll give up (when you have to) at exactly the wrong time.
   
   Tony Loton, author --
   Stock Fundamentals On Trial: Do Dividend Yield, P/E and PEG Really Work?
   Financial Trading Patterns