Best books of 2016 – These are some of the most popular choices in the annual survey of book recommendations compiled by Bloomberg.
John Bogle – Founder, the Vanguard Group
The finance sector of Western economies is too large and attracts too many of the smartest college graduates. Financialization over the past three decades has created a structure that lacks resilience and supports absurd volumes of trading. The finance sector devotes too little attention to the search for new investment opportunities and the stewardship of existing ones, and far too much to secondary-market dealing in existing assets. Regulation has contributed more to the problems than the solutions.
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Why? What is finance for? John Kay, with wide practical and academic experience in the world of finance, understands the operation of the financial sector better than most. He believes in good banks and effective asset managers, but good banks and effective asset managers are not what he sees.
In a dazzling and revelatory tour of the financial world as it has emerged from the wreckage of the 2008 crisis, Kay does not flinch in his criticism: we do need some of the things that Citigroup and Goldman Sachs do, but we do not need Citigroup and Goldman to do them. And many of the things done by Citigroup and Goldman do not need to be done at all. The finance sector needs to be reminded of its primary purpose: to manage other people s money for the benefit of businesses and households. It is an aberration when the some of the finest mathematical and scientific minds are tasked with devising algorithms for the sole purpose of exploiting the weakness of other algorithms for computerized trading in securities. To travel further down that road leads to ruin.
Best Books Of 2016: Mohamed El-Erian – Chief economic adviser, Allianz
Eight years on from the biggest market meltdown since the Great Depression, the key lessons of the crisis of 2008 still remain unlearned—and our financial system is just as vulnerable as ever. Many of us know that our government failed to fix the banking system after the subprime mortgage crisis. But what few of us realize is how the misguided financial practices and philosophies that nearly toppled the global financial system have come to infiltrate ALL American businesses, putting us on a collision course for another cataclysmic meltdown.
Drawing on in-depth reporting and exclusive interviews at the highest rungs of Wall Street and Washington, Time assistant managing editor and economic columnist Rana Foroohar shows how the “financialization of America” – the trend by which finance and its way of thinking have come to reign supreme – is perpetuating Wall Street’s reign over Main Street, widening the gap between rich and poor, and threatening the future of the American Dream.
Policy makers get caught up in the details of regulating “Too Big To Fail” banks, but the problems in our market system go much broader and deeper than that. Consider that:
- Thanks to 40 years of policy changes and bad decisions, only about 15 % of all the money in our market system actually ends up in the real economy – the rest stays within the closed loop of finance itself.
- The financial sector takes a quarter of all corporate profits in this country while creating only 4 % of American jobs.
- The tax code continues to favor debt over equity, making it easier for companies to hoard cash overseas rather than reinvest it on our shores.
- Our biggest and most profitable corporations are investing more money in stock buybacks than in research and innovation.
- And, still, the majority of the financial regulations promised after the 2008 meltdown have yet come to pass, thanks to cozy relationship between our lawmakers and the country’s wealthiest financiers.
Exploring these forces, which have have led American businesses to favor balancing-sheet engineering over the actual kind and the pursuit of short-term corporate profits over job creation, Foroohar shows how financialization has so gravely harmed our society, and why reversing this trend is of grave importance to us all. Through colorful stories of both “Takers” and “Makers,” she’ll reveal how we change the system for a better and more sustainable shared economic future.
- Inc.com – The 7 Books That Explain 2016
- Financial Times/McKinsey – Shortlisted for the Business Book of the Year Award 2016
- 800 CEO Read – Longlisted for Business Book of the Year Award 2016
- Financial Times – Best Books of 2016: Economics
- The Atlantic – Best Business Books for Summer 2016
- Success.com – #16 on list of 41 Books to Motivate You to Be Your Best Self
The Man Who Knew: The Life and Times of Alan Greenspan by Sebastian Mallaby
Sebastian Mallaby’s magisterial biography of Alan Greenspan, the product of over five years of research based on untrammeled access to his subject and his closest professional and personal intimates, brings into vivid focus the mysterious point where the government and the economy meet. To understand Greenspan’s story is to see the economic and political landscape of the last 30 years–and the presidency from Reagan to George W. Bush–in a whole new light. As the most influential economic statesman of his age, Greenspan spent a lifetime grappling with a momentous shift: the transformation of finance from the fixed and regulated system of the post-war era to the free-for-all of the past quarter century. The story of Greenspan is also the story of the making of modern finance, for good and for ill.
Greenspan’s life is a quintessential American success story: raised by a single mother in the Jewish émigré community of Washington Heights, he was a math prodigy who found a niche as a stats-crunching consultant. A master at explaining the economic weather to captains of industry, he translated that skill into advising Richard Nixon in his 1968 campaign. This led to a perch on the White House Council of Economic Advisers, and then to a dazzling array of business and government roles, from which the path to the Fed was relatively clear. A fire-breathing libertarian and disciple of Ayn Rand in his youth who once called the Fed’s creation a historic mistake, Mallaby shows how Greenspan reinvented himself as a pragmatist once in power. In his analysis, and in his core mission of keeping inflation in check, he was a maestro indeed, and hailed as such. At his retirement in 2006, he was lauded as the age’s necessary man, the veritable God in the machine, the global economy’s avatar. His memoirs sold for record sums to publishers around the world.
But then came 2008. Mallaby’s story lands with both feet on the great crash which did so much to damage Alan Greenspan’s reputation. Mallaby argues that the conventional wisdom is off base: Greenspan wasn’t a naïve ideologue who believed greater regulation was unnecessary. He had pressed for greater regulation of some key areas of finance over the years, and had gotten nowhere. To argue that he didn’t know the risks in irrational markets is to miss the point. He knew more than almost anyone; the question is why he didn’t act, and whether anyone else could or would have. A close reading of Greenspan’s life provides fascinating answers to these questions, answers whose lessons we would do well to heed. Because perhaps Mallaby’s greatest lesson is that economic statesmanship, like political statesmanship, is the art of the possible. The Man Who Knew is a searching reckoning with what exactly comprised the art, and the possible, in the career of Alan Greenspan.
Niall Ferguson – Senior Fellow at the Hoover Institution, Stanford, and author of Kissinger, 1923-1968: The Idealist
The Man Who Knew: The Life and Times of Alan Greenspan by Sebastian Mallaby
Best Books Of 2016: Neel Kashkari – President, Federal Reserve Bank of Minneapolis
Just Mercy: A Story of Justice and Redemption by Bryan Stevenson
Bryan Stevenson was a young lawyer when he founded the Equal Justice Initiative, a legal practice dedicated to defending those most desperate and in need: the poor, the wrongly condemned, and women and children trapped in the farthest reaches of our criminal justice system. One of his first cases was that of Walter McMillian, a young man who was sentenced to die for a notorious murder he insisted he didn’t commit. The case drew Bryan into a tangle of conspiracy, political machination, and legal brinksmanship—and transformed his understanding of mercy and justice forever.
Just Mercy is at once an unforgettable account of an idealistic, gifted young lawyer’s coming of age, a moving window into the lives of those he has defended, and an inspiring argument for compassion in the pursuit of true justice.
From a former marine and Yale Law School graduate, a powerful account of growing up in a poor Rust Belt town that offers a broader, probing look at the struggles of America’s white working class
Hillbilly Elegy is a passionate and personal analysis of a culture in crisis—that of white working-class Americans. The decline of this group, a demographic of our country that has been slowly disintegrating over forty years, has been reported on with growing frequency and alarm, but has never before been written about as searingly from the inside. J. D. Vance tells the true story of what a social, regional, and class decline feels like when you were born with it hung around your neck.
The Vance family story begins hopefully in postwar America. J. D.’s grandparents were “dirt poor and in love,” and moved north from Kentucky’s Appalachia region to Ohio in the hopes of escaping the dreadful poverty around them. They raised a middle-class family, and eventually their grandchild (the author) would graduate from Yale Law School, a conventional marker of their success in achieving generational upward mobility.
But as the family saga of Hillbilly Elegy plays out, we learn that this is only the short, superficial version. Vance’s grandparents, aunt, uncle, sister, and, most of all, his mother, struggled profoundly with the demands of their new middle-class life, and were never able to fully escape the legacy of abuse, alcoholism, poverty, and trauma so characteristic of their part of America. Vance piercingly shows how he himself still carries around the demons of their chaotic family history.
A deeply moving memoir with its share of humor and vividly colorful figures, Hillbilly Elegy is the story of how upward mobility really feels. And it is an urgent and troubling meditation on the loss of the American dream for a large segment of this country.
The Man Who Knew: The Life and Times of Alan Greenspan by Sebastian Mallaby
Mervyn King – Former Governor, Bank of England
Kissinger 1923-1968: The Idealist by Niall Ferguson
No American statesman has been as revered or as reviled as Henry Kissinger. Once hailed as “Super K”—the “indispensable man” whose advice has been sought by every president from Kennedy to Obama—he has also been hounded by conspiracy theorists, scouring his every “telcon” for evidence of Machiavellian malfeasance. Yet as Niall Ferguson shows in this magisterial two-volume biography, drawing not only on Kissinger’s hitherto closed private papers but also on documents from more than a hundred archives around the world, the idea of Kissinger as the ruthless arch-realist is based on a profound misunderstanding.
The first half of Kissinger’s life is usually skimmed over as a quintessential tale of American ascent: the Jewish refugee from Hitler’s Germany who made it to the White House. But in this first of two volumes, Ferguson shows that what Kissinger achieved before his appointment as Richard Nixon’s national security adviser was astonishing in its own right. Toiling as a teenager in a New York factory, he studied indefatigably at night. He was drafted into the U.S. infantry and saw action at the Battle of the Bulge—as well as the liberation of a concentration camp—but ended his army career interrogating Nazis. It was at Harvard that Kissinger found his vocation. Having immersed himself in the philosophy of Kant and the diplomacy of Metternich, he shot to celebrity by arguing for “limited nuclear war.” Nelson Rockefeller hired him. Kennedy called him to Camelot. Yet Kissinger’s rise was anything but irresistible. Dogged by press gaffes and disappointed by “Rocky,” Kissinger seemed stuck—until a trip to Vietnam changed everything.
The Idealist is the story of one of the most important strategic thinkers America has ever produced. It is also a political Bildungsroman, explaining how “Dr. Strangelove” ended up as consigliere to a politician he had always abhorred. Like Ferguson’s classic two-volume history of the House of Rothschild, Kissinger sheds dazzling new light on an entire era. The essential account of an extraordinary life, it recasts the Cold War world.
The Vanishing Man: In Pursuit of Velazquez by Laura Cumming
Jim O’Neill – Former Goldman Sachs Chief Economist
We all have to endure failure from time to time, whether it’s underperforming at a job interview, flunking an exam, or losing a pickup basketball game. But for people working in safety-critical industries, getting it wrong can have deadly consequences. Consider the shocking fact that preventable medical error is the third-biggest killer in the United States, causing more than 400,000 deaths every year. More people die from mistakes made by doctors and hospitals than from traffic accidents. And most of those mistakes are never made public, because of malpractice settlements with nondisclosure clauses.
For a dramatically different approach to failure, look at aviation. Every passenger aircraft in the world is equipped with an almost indestructible black box. Whenever there’s any sort of mishap, major or minor, the box is opened, the data is analyzed, and experts figure out exactly what went wrong. Then the facts are published and procedures are changed, so that the same mistakes won’t happen again. By applying this method in recent decades, the industry has created an astonishingly good safety record.
Few of us put lives at risk in our daily work as surgeons and pilots do, but we all have a strong interest in avoiding predictable and preventable errors. So why don’t we all embrace the aviation approach to failure rather than the health-care approach? As Matthew Syed shows in this eye-opening book, the answer is rooted in human psychology and organizational culture.
Syed argues that the most important determinant of success in any field is an acknowledgment of failure and a willingness to engage with it. Yet most of us are stuck in a relationship with failure that impedes progress, halts innovation, and damages our careers and personal lives. We rarely acknowledge or learn from failure—even though we often claim the opposite. We think we have 20/20 hindsight, but our vision is usually fuzzy.
Syed draws on a wide range of sources—from anthropology and psychology to history and complexity theory—to explore the subtle but predictable patterns of human error and our defensive responses to error. He also shares fascinating stories of individuals and organizations that have successfully embraced a black box approach to improvement, such as David Beckham, the Mercedes F1 team, and Dropbox.
Class of ’92: Out of Our League by Nicky Butt, Ryan Giggs, Gary Neville, Phil Neville, and Paul Scholes
Best Books Of 2016: Anthony Scaramucci – Founder, SkyBridge Capital
The Fall of the Ottomans: The Great War in the Middle East by Eugene Rogan
By 1914 the powers of Europe were sliding inexorably toward war, and they pulled the Middle East along with them into one of the most destructive conflicts in human history. In The Fall of the Ottomans, award-winning historian Eugene Rogan brings the First World War and its immediate aftermath in the Middle East to vivid life, uncovering the often ignored story of the region’s crucial role in the conflict. Unlike the static killing fields of the Western Front, the war in the Middle East was fast-moving and unpredictable, with the Turks inflicting decisive defeats on the Entente in Gallipoli, Mesopotamia, and Gaza before the tide of battle turned in the Allies’ favor. The postwar settlement led to the partition of Ottoman lands, laying the groundwork for the ongoing conflicts that continue to plague the modern Arab world. A sweeping narrative of battles and political intrigue from Gallipoli to Arabia, The Fall of the Ottomans is essential reading for anyone seeking to understand the Great War and the making of the modern Middle East.
The Black Widow by Daniel Silva
Bestselling author Daniel Silva delivers another spellbinding international thriller—one that finds the legendary Gabriel Allon grappling with an ISIS mastermind.
Gabriel Allon, the art restorer, spy, and assassin described as the most compelling fictional creation “since Ian Fleming put down his martini and invented James Bond” (Rocky Mountain News), is poised to become the chief of Israel’s secret intelligence service. But on the eve of his promotion, events conspire to lure him into the field for one final operation. ISIS has detonated a massive bomb in the Marais district of Paris, and a desperate French government wants Gabriel to eliminate the man responsible before he can strike again.
Acclaimed novelist Daniel Silva has thrilled, entertained and educated readers with eighteen thoughtful and gripping spy novels featuring a diverse cast of compelling characters and ingenious plots that have taken them around the globe and back—from the United States to Europe, Russia to the Middle East. From its shocking opening to its explosive denouement in Washington, D.C., The Black Widow reveals itself as Silva’s most timely and powerful novel yet. Following the success of his smash hit The English Spy, this electrifying thriller showcases Silva’s consummate skill and brilliant imagination, and is sure to be a must read for his multitude of current and future fans.
Philip Tetlock – Co-author, Superforecasting: The Art and Science of Prediction
The Pope of Physics: Enrico Fermi and the Birth of the Atomic Age by Gino Segrè and Bettina Hoerlin
Enrico Fermi is unquestionably among the greats of the world’s physicists, the most famous Italian scientist since Galileo. Called the Pope by his peers, he was regarded as infallible in his instincts and research. His discoveries changed our world; they led to weapons of mass destruction and conversely to life-saving medical interventions.
This unassuming man struggled with issues relevant today, such as the threat of nuclear annihilation and the relationship of science to politics. Fleeing Fascism and anti-Semitism, Fermi became a leading figure in America’s most secret project: building the atomic bomb. The last physicist who mastered all branches of the discipline, Fermi was a rare mixture of theorist and experimentalist. His rich legacy encompasses key advances in fields as diverse as comic rays, nuclear technology, and early computers.
In their revealing book, The Pope of Physics, Gino Segré and Bettina Hoerlin bring this scientific visionary to life. An examination of the human dramas that touched Fermi’s life as well as a thrilling history of scientific innovation in the twentieth century, this is the comprehensive biography that Fermi deserves.
Best Books Of 2016: Whitney Tilson – Managing partner, Kase Capital Management
The Unwinding: An Inner History of the New America by George Packer
American democracy is beset by a sense of crisis. Seismic shifts during a single generation have created a country of winners and losers, allowing unprecedented freedom while rending the social contract, driving the political system to the verge of breakdown, and setting citizens adrift to find new paths forward. In The Unwinding, George Packer tells the story of the past three decades by journeying through the lives of several Americans, including a son of tobacco farmers who becomes an evangelist for a new economy in the rural South, a factory worker in the Rust Belt trying to survive the collapse of her city, a Washington insider oscillating between political idealism and the lure of organized money, and a Silicon Valley billionaire who arrives at a radical vision of the future. Packer interweaves these stories with sketches of public figures, from Newt Gingrich to Jay-Z, and collages made from newspaper headlines, advertising slogans, and song lyrics. Packer’s novelistic and kaleidoscopic history of the new America is his most ambitious work to date.
By Julie Verhage And Simon Kennedy – Bloomberg – Read the full article here.