OTHER PEOPLE'S MONEY: The Real Business of Finance


OTHER PEOPLE'S MONEY: The Real Business of Finance

JOHN KAY    Book Number: 87038    Product format: Hardback

In most Western economies today, the assets and liabilities of banks exceed those of the government and the annual income of everyone in the country. But these assets and liabilities are mainly obligations from and to other financial institutions. Lending to firms and individuals engaged in the production of goods and services amounts to less than 10% of the total and in Britain, with a particularly active financial sector, that figure is less than 3%. As Adam Smith in his 'The Wealth of Nations' in 1776 said: "The directors of such companies, however, being the managers rather of other people's money than of their own, it cannot be well expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own... Negligence and profusion, therefore, must always prevail..." 'Financialization' over the past three decades has created a structure that lacks resilience and supports absurd volumes of trading. There is 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. Why? What is finance for? John Kay, visiting Professor of Economics at the LSE with wide practical and academic experience understands the operation of the financial sector better than most. He believes in good banks and effective asset managers, but that is not what he sees. His revelatory tour of the financial world as it has emerged from the wreckage of the 2008 crisis demonstrates that the finance sector needs to be reminded to manage other people's money for the benefit of businesses and households. It is an aberration when some of the finest mathematical and scientific minds are tasked with devising algorithms for the sole purpose of exploiting the weaknesses of other algorithms for computerised trading insecurities. Like the parable of guessing the weight of the ox, the ox died because amid all the activity of guessing his weight and trading, no one had remembered to feed it. 336pp.
Published price: $27.99
Bibliophile price: £4.75


Additional product information

ISBN 9781610396035
Browse these categories as well: Modern History/Current Affairs, Business & Computers

Customers who bought this product also bought

COMMON LAND
Bibliophile price: £3.00
THOMAS HARDY: Life & Times
Bibliophile price: £4.50
WHY IT'S NOT ALL ROCKET SCIENCE
Bibliophile price: £2.75

Customer ratings for OTHER PEOPLE'S MONEY: The Real Business of Finance

Number of ratings: 1
Average rating: 5
Excellent
from Anonymous on 07/03/2020
An excellent if worrying insight into the banking world. The greed and lack of morality in this sector of business has worrying implications for us all.