Wednesday, February 21, 2007
THE NEW FINANCIAL ORDER " BY Robert J. Shiller.
The primary subject matter of finance is , the management of risks. Picture vast international markets that trade major macroeconomic aggregates such as the total outputs of countries like the US.., Japan, Paraguay, and Singapore. Or Indexes of single family home prices both in cities - from New York to Paris to Sydney - and in regions, such as shoreline properties on the Riveiera or rubber plantations of Indonesia . Portfolio investors will be able to take positions in a wide array of such markets with little cost.
International markets for human capital will emerge as well for occupations and the professons, to the careers of actors and performers to common labour.
Thes markets will facilitate the creation of livelihood insurance policies on every major career and job category, and home equity insurance policies on the value of everyone' s home..
By lightentning the burden of risk,a new democratic finance will encourage all of us to be more venturesome. As a thought expreiment, consider a young woman from India, living in Chicago, who wantes to be violinist. She finds it worrisome to borrow the money for her training given that her future income as a musician is so uncertain. But the new financial technology enalbles her to borrow money on-line that need not be fully repaid if an index of future income of violnisits turns out to be disa ppointeing. The loan makes it easier for her to go into her favioured career by limiting her risk.
" NEW FIANCIAL ORDER " BY ROBERT J SHILLER.
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He wrote this book, " Market Volatility " which has got 4.5 star rating at amazon. Link is
http://www.amazon.com/Market-Volatility-Robert-J-Shiller/dp/0262691515/sr=1-4/qid=1172079542/ref=sr_1_4/002-9888563-0212052?ie=UTF8&s=books
Book Description
-----------------------------
Market Volatility proposes an innovative theory, backed by substantial statistical evidence, on the causes of price fluctuations in speculative markets. It challenges the standard efficient-markets model for explaining asset prices by emphasizing the significant role that popular opinion or psychology can play in price volatility.Offering detailed analyses of the stock, the bond, and the real estate markets, Shiller discusses the relations of these speculative prices and extends the analysis of speculative markets to macroeconomic activity in general.Robert J. Shiller is Stanley B. Resor Professor of Economics at the Cowles Foundation, Yale University.
Another book of his, ' Irrational Exhuberance' got 4 rating.
From Library Journal
Taking his book's title and thesis from Alan Greenspan's 1996 description of investors, Shiller (economics, Yale Univ.) studies the current booming U.S. stock market in historical terms. His research into past U.S. and international markets indicates that during every speculative bubble there was always widespread consensus that high valuations were justified by each market's special circumstances. Every large market correction seemed to result from popular consensus rather than specific events or news. Shiller says that past bull and bear markets, though often based initially on sound fundamental reasoning, fed upon themselves to go beyond what the facts justified. He challenges the efficient market theory, demonstrating that markets cannot be explained historically by the movement of company earnings or dividends. He concludes that the current U.S. stock market is a speculative bubble awaiting correction. While the book certainly belongs in all academic business collections, public libraries should also purchase it as a counterweight to the plethora of get-rich-quick investment guides.-Lawrence R. Maxted, Gannon Univ., Erie, PA
Link here :
http://www.amazon.com/Irrational-Exuberance-Robert-J-Shiller/dp/0767923634/sr=1-1/qid=1172079542/ref=sr_1_1/002-9888563-0212052?ie=UTF8&s=books
International markets for human capital will emerge as well for occupations and the professons, to the careers of actors and performers to common labour.
Thes markets will facilitate the creation of livelihood insurance policies on every major career and job category, and home equity insurance policies on the value of everyone' s home..
By lightentning the burden of risk,a new democratic finance will encourage all of us to be more venturesome. As a thought expreiment, consider a young woman from India, living in Chicago, who wantes to be violinist. She finds it worrisome to borrow the money for her training given that her future income as a musician is so uncertain. But the new financial technology enalbles her to borrow money on-line that need not be fully repaid if an index of future income of violnisits turns out to be disa ppointeing. The loan makes it easier for her to go into her favioured career by limiting her risk.
" NEW FIANCIAL ORDER " BY ROBERT J SHILLER.
-------------------------------------------------------------------------------------------------------------------------------------------------------------
He wrote this book, " Market Volatility " which has got 4.5 star rating at amazon. Link is
http://www.amazon.com/Market-Volatility-Robert-J-Shiller/dp/0262691515/sr=1-4/qid=1172079542/ref=sr_1_4/002-9888563-0212052?ie=UTF8&s=books
Book Description
-----------------------------
Market Volatility proposes an innovative theory, backed by substantial statistical evidence, on the causes of price fluctuations in speculative markets. It challenges the standard efficient-markets model for explaining asset prices by emphasizing the significant role that popular opinion or psychology can play in price volatility.Offering detailed analyses of the stock, the bond, and the real estate markets, Shiller discusses the relations of these speculative prices and extends the analysis of speculative markets to macroeconomic activity in general.Robert J. Shiller is Stanley B. Resor Professor of Economics at the Cowles Foundation, Yale University.
Another book of his, ' Irrational Exhuberance' got 4 rating.
From Library Journal
Taking his book's title and thesis from Alan Greenspan's 1996 description of investors, Shiller (economics, Yale Univ.) studies the current booming U.S. stock market in historical terms. His research into past U.S. and international markets indicates that during every speculative bubble there was always widespread consensus that high valuations were justified by each market's special circumstances. Every large market correction seemed to result from popular consensus rather than specific events or news. Shiller says that past bull and bear markets, though often based initially on sound fundamental reasoning, fed upon themselves to go beyond what the facts justified. He challenges the efficient market theory, demonstrating that markets cannot be explained historically by the movement of company earnings or dividends. He concludes that the current U.S. stock market is a speculative bubble awaiting correction. While the book certainly belongs in all academic business collections, public libraries should also purchase it as a counterweight to the plethora of get-rich-quick investment guides.-Lawrence R. Maxted, Gannon Univ., Erie, PA
Link here :
http://www.amazon.com/Irrational-Exuberance-Robert-J-Shiller/dp/0767923634/sr=1-1/qid=1172079542/ref=sr_1_1/002-9888563-0212052?ie=UTF8&s=books
