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When Markets Collide: Investment Strategies for the Age of Global Economic Change

Mohamed El-Erian

When Markets Collide: Investment Strategies for the Age of Global Economic Change Mohamed El-Erian Amazon Price: $18.45
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Customer Reviews:
Total reviews: 38 Average rating: 3.0 of 5

Editorial Review:

"ONE OF THE SMARTEST INVESTORS ON THE PLANET."--MONEY MAGAZINE. .

�This book is an essential read for those who. wish to understand the modern world of investing.�.
�Alan Greenspan

. . .

Winner of the 2008 Financial Times and Goldman Sachs Business Book of the Year Award

When Markets Collide is a timely alert to the fundamental changes taking place in today's global economic and financial systems--and a call to action for investors who may fall victim to misinterpreting important signals. While some have tended to view asset class mispricings as mere �noise,� this compelling book shows why they are important signals of opportunities and risks that will shape the market for years to come. One of today's most respected names in finance, Mohamed El-Erian puts recent events in their proper context, giving you the tools that can help you interpret the markets, benefit from global economic change, and navigate the risks.

. .

The world economy is in the midst of a series of hand-offs. Global growth is now being heavily influenced by nations that previously had little or no systemic influence. Former debtor nations are building unforeseen wealth and, thus, enjoying unprecedented influence and facing unusual challenges. And new derivative products have changed the behavior of many market segments and players. Yet, despite all these changes, the system's infrastructure is yet to be upgraded to reflect the realities of today's and tomorrow's world. El-Erian investigates the underlying drivers of global change to shed light on how you should:

. .
    . .
  • Think about the new opportunities and risks.
  • Construct an appropriately diversified and internationalized portfolio.
  • Protect your portfolio against new sources of systemic risk.
  • Best think about the impact of central banks and financial policies around the world
. .

Offering up predictions of future developments, El-Erian directs his focus to help you capitalize on the new financial landscape, while limiting exposure to new risk configurations.

. .

When Markets Collide is a unique collection of books for investors and policy makers around the world. In addition to providing a thorough analysis and clear perspective of recent events, it lays down a detailed map for navigating your way through an otherwise perplexing new economic landscape.

.

The World Is Curved: Hidden Dangers to the Global Economy

David M. Smick

The World Is Curved: Hidden Dangers to the Global Economy David M. Smick Amazon Price: $17.79
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Customer Reviews:
Total reviews: 24 Average rating: 3.5 of 5

Editorial Review:

David Smick keeps a low profile, but experts consider him one of the most insightful financial market strategists in the world. For more than two decades, he has conferred with central bankers (such as Alan Greenspan and Ben Bernanke) and advised top Wall Street executives and investors, from George Soros to Michael Steinhardt to Stan Druckenmiller. Political leaders (from Bill Bradley to Jack Kemp) have regularly sought his policy advice.

The World Is Curved picks up where Thomas Friedman’s The World Is Flat left off, taking readers on an insider’s tour through the private offices of central bankers, finance ministers, even prime ministers. Smick reveals how today’s risky environment came to be—and why the mortgage mess is a symptom of potentially far more devastating trouble. He wrestles with the two questions on everyone’s mind: How bad could things really get in today’s volatile economy? And what can we do about it?

Drawing on riveting anecdotes in language anyone can understand, Smick explains:

• Why the churning cauldron we call China (the next great bubble to burst) represents a powerful threat to everyone’s pocketbook
• How Japanese housewives have taken control of their nation’s savings, and why it matters to us
• How greed-driven bankers and investment bankers have put everyone’s pensions and 401(k)s at risk
• Why today’s “incredible shrinking central banks” may not be able to save us when the next crisis hits
• Why the big-money Russian, Chinese, Saudi, and Dubai sovereign wealth funds represent a tectonic shift in global financial power, away from the United States, Europe, and Japan
• Why the world desperately needs a “big think” financial doctrine to guide today’s dangerous ocean of money

The World Is Curved is the rare book that speaks simultaneously to the Wall Street, Washington, and London elite, yet its apt storytelling shows Main Street readers how to survive in these turbulent times.

Confessions of an Economic Hit Man

John Perkins

Confessions of an Economic Hit Man John Perkins Amazon Price: $17.13
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Customer Reviews:
Total reviews: 644 Average rating: 3.5 of 5

Why was "Hitman" a hit? Here's how Perkins would read the negative reviews 1 out of 5 stars.
2 of 5 people found this review helpful.

PRO: At the end of the book, he says you, the reader, are the reason the world is the way it is. After listening to his nonstop bashing of corporations and governments, I expected him to conclude with a final "coup de grace" on those two entities, but I was wrong! He puts the blame where it should be: all of us. We are those people in the corporations and the governments reflect what we want. If we want to blame someone, let's start with ourselves. I commend Perkins for saying that. "Any fool can criticise, and most fools do," said Andrew Carnegie. Those few paragraphs almost took the book to two stars. Unfortunately, the rest of it was terrible.

CONS: Many other reviewers will point out the myriad of flaws and shortcomings of this book. I'll illustrate how Perkins would read all these one star reviews. He would say:

- They're written by jackals, government officials, and corporate hitmen trying to discredit me.
- They're people who are so naive that they don't understand how the real world works. They say this is a fantasy. It's no fantasy, baby, this was real life!

PSYCHOLOGICAL ASSESSMENT OF PERKINS: Perkins is a man filled with regret. He dreamed of living an exciting life, but ended up living just a mediocre one. For example:

- He wanted to go to Ivy League Schools, but went to a ho-hum schools.

- He wanted to be an executive, but he never got beyond middle management.

- He wanted to be a spy for the NSA, but all he got was an interview.

- He wanted to live a glamourous life, but he got all the pedestrian glamour of a typical international corporate job.

- He wanted babes, but he just got a divorce and a few flings.

In short, he feels like a failure. He's frustrated by that so he's decided to reinterpret his whole life, make it more exciting, boost his ego a bit by writing a book that makes his life seem more interesting than it was. He fills it with cloak and dagger intrigue, but there's really nothing there. It's obvious that it's all in his mind.

He depicts himself as an "insider," but offers scant interesting insider stuff. Most of his theories are backed by his daily news source: the NY Times.

His opinion that construction projects drive our economy and decisions is wrong. Foreign infrastructure projects make up less than 1% of the US government budget and not even 0.1% of our economy. Furthermore, he says that "very few" benefit from the new electricity plants we build in Ecuador or Indonesia. Really? So we build a multi-billion dollar plant to power three rich people's homes? Wrong. Thousands of poor people benefit from the roads and electricity plants. That's why they invite us there. Duh! Do we also benefit? Sure! We probably wouldn't do it otherwise! DUH!

The other irritation about this book is that he thinks he's making novel arguments, when they're usually obvious to all. For example, corporatations are self-interested. Wow. I never would have guessed that. Let's add: humans are self-interested. What do you expect Exxon to do? Sell oil for less than it costs them to make it? Do you expect the salesman of a construction firm to not try to get the best deal he can get for his company? Doesn't he want to get a bonus and send his children to a good college?

He whines about people working for a dollar a day in "sweatshops." Are we holding them at gunpoint? No. On the contrary, people in Asia work at Nike's factories to earn their $1 a day for two reasons:

1. It's better than getting 50 cents a day, which is what the local companies pay. Working for a foreign company is PRESTIGIOUS and coveted.

2. Their daily costs are 90 cents a day. Some love to focus on how little people in third world countries make, but they often forget how little it costs them to live. Imagine their conversations about us: "It costs $100/day to live in America. How do they do it? We're much better off here because it costs just 90 cents per day." There are two sides of the equation, Perkins.

CONCLUSION: There were only two reasons I listened to this misleading and overrated book till the end. First, my friend recommended it. Second, I was curious to see what SOLUTION he proposed. It's easy to complain. But what do you think we should do instead?

As I mentioned at the beginning, he places part of the blame on you and me. Great. Well said. Now what? He tells us to drive less. I bet he drives and flies much more than any of us because he's promoting his book. He tell us that we should have a more fair world. That we should have medical services available for all, information should be widespread, and that we should think of the consequences of our actions. Blah... blah.. blah... as you can see: no specifics. Why not? Because it's nobody would like to do what would need to be done. He's asking us to change human nature. Sorry, Perkins, it's ain't going to happen. And Perkins is proof that it won't happen because lives in a nice house, buys food from corporations, votes for the political establishment, doesn't send 50% of his income to third world countries, etc....

Get this if you want to laugh.

Editorial Review:

Confessions of an Economic Hit Man reveals a game that, according to John Perkins, is "as old as Empire" but has taken on new and terrifying dimensions in an era of globalization. And Perkins should know. For many years he worked for an international consulting firm where his main job was to convince LDCs (less developed countries) around the world to accept multibillion-dollar loans for infrastructure projects and to see to it that most of this money ended up at Halliburton, Bechtel, Brown and Root, and other United States engineering and construction companies. This book, which many people warned Perkins not to write, is a blistering attack on a little-known phenomenon that has had dire consequences on both the victimized countries and the U.S.

A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)

Project Management Institute

A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides) Project Management Institute Amazon Price: $32.97
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Customer Reviews:
Total reviews: 135 Average rating: 3.5 of 5

Non-receipt of product 1 out of 5 stars.
0 of 0 people found this review helpful.

It's been almost a month and I have received this book. After two weeks, I looked online and reviewed the review of the sender. Too my surprise, I found out that the sender has a practice of not sending the product to buyers. I recommend this seller be taken off of Amazon.

Editorial Review:

A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—2000 Edition is now available in eight additional languages to help project managers around the world.

Each of PMI’s official translations includes a bilingual glossary of newly translated and standardized project management terminology. This allows candidates to study the guide in the same language in which they plan to take the Project Management Professional (PMP®) certification exam.

PMI undertook a rigorous, year-long process to ensure the maximum effectiveness of each official translation. Each translation team included qualified bilingual PMPs as well as professional translators and editors.

Official translations: Chinese, Japanese, Spanish, Portuguese, French, Korean, German and Italian.

Manias, Panics, and Crashes: A History of Financial Crises (Wiley Investment Classics)

Charles P. Kindleberger, Robert Aliber

Manias, Panics, and Crashes: A History of Financial Crises (Wiley Investment Classics) Charles P. Kindleberger, Robert Aliber Amazon Price: $13.57
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Customer Reviews:
Total reviews: 45 Average rating: 3.5 of 5

Presents a correct analysis but should have devoted some more time to the warnings of Smith and Keynes-4 .5 stars 4 out of 5 stars.
7 of 8 people found this review helpful.

Kindleberger does a great job of demonstrating what the root cause of economic downturns is.The process starts as bubbles of speculation on a sea of enterprise and entrepreneurship as pointed out by Keynes.However,as time passes the bankers decide to shift loans to speculators as well as starting to engage in speculation themselves.The situation changes as one observes a sea of speculation with few bubbles of enterprise floating on top.This sets the stage for the bubble to start growing with the finance coming from the bankers who fuel the expansion in the bubble.This leads to the mania stage.All it takes here is for some tiny liquidity disruption to set off a panic of selling which leads to the Crash as various participants discover that their paper wealth has evaporated ,leaving them with crushing debt loans as their debt leveraging and margin account financing now becomes an albatross around their necks.The end result is various bankruptcies and defaults and a recession or depression.


Kindleberger shows how this pattern occurs over and over again in history.Unfortunately,Kindleberger fails to provide the reader with a simplified summary from the earlier work of Adam Smith and J M Keynes that explains the crucial steps involved in inflating,but not creating, the bubble-(a)loans from the commercial bankers to loanees whom the bank knows for certain are going to be engaged in speculative behavior and (b)the decision by the banks themselves to enter the market as active speculators.It is true that the bubbles themseves start irrespective of the banking system since individuals are free to engage in speculative finance with their own money and assets.However,the bubbles could not grow and expand over time if the bankers refused to allow the speculators to leverage their debt position by obtaining extensive lines of credit from the bankers to expand their debt positions.


Everyone who reads this book should also read pp.290-340 of The Wealth of Nations[1776;Modern Library(Cannan)edition]and chapters 12 and 22 of The General Theory of Employment,Interest and Money(1936).Keynes proves mathematically that it is uncertainty and speculation(the speculative demand for money) that cause involuntary unemployment in chapter 21 on pp.305-306.The neoclassical(monetarism,rational expectations,real business cycles,etc.) schools must,therefore ,deny that there is anything called uncertainty or ignorance;there is only risk, which is represented by the standard deviation sigma.Similarly ,they must deny that there is any significant speculative demand for money;there is only a transactions demand for money.Kindleberger essentially demonstates that the neoclassical schools have absolutely no historical support.This also means that there would be no statistical support for their claims that the normal probability distribution is applicable to a wide range of industrial and financial markets.Kindleberger, as well as the new coauthors of this latest edition, overlooked the immense support that Kindleberger could have used to buttress his overwhelming historical evidence that has been madee available by Benoit Mandelbrot. Benoit Mandelbrot has presented massive amounts of statistical evidence, for over 50 years ,demonstrating that the neoclassical school's claims about the normal distribution do not have a shred of evidence to support them.It should not be surprising to discover that NO neoclassical economist in the 20th or 21st century has ever done a single goodness of fit test on the various time series data sets in order to supply support for their claims that price changes in all markets are normally distributed over time.



I recommend this book .It will allow a reader to understand the negatives that could very well happen in the 2008-2010 time period.Ben Bernanke's 1.2 trillion dollar banker and Wall Street bailout,from August,2007-May,2008, has merely delayed the inevitable while creating massive new bubbles in oil and commodities and driving the value of the dollar to new lows.Bernanke has merely substituted future stagflation for recession.

Editorial Review:

Manias, Panics, and Crashes, Fifth Edition is an engaging and entertaining account of the way that mismanagement of money and credit has led to financial explosions over the centuries. Covering such topics as the history and anatomy of crises, speculative manias, and the lender of last resort, this book puts the turbulence of the financial world in perspective. The updated fifth edition expands upon each chapter, and includes two new chapters focusing on significant financial crises of the last fifteen years.

The Millionaire Next Door: The Surprising Secrets of America's Wealthy

Thomas J. Stanley, William D. Danko

The Millionaire Next Door: The Surprising Secrets of America's Wealthy Thomas J. Stanley, William D. Danko List Price: $28.95
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Customer Reviews:
Total reviews: 794 Average rating: 4.0 of 5

Good Read 5 out of 5 stars.
0 of 0 people found this review helpful.

Quite the eye-opener about how many supposedly rich people are actually being supported by their parents. I did think it had a lot of undertones about how being cheap, I mean frugal, was noble in its own right and there's nothing worth spending money on except charity and education. But it was motivational, inspirational and educational.

A Must Read 5 out of 5 stars.
0 of 0 people found this review helpful.

This was a surprising book, because it goes against popular myth as to who are the wealthy and why.

If politicians and business leaders had read this book, we may not have gotten ourselves into the current financial mess!

Editorial Review:

The incredible national bestseller that is changing people's lives -- and increasing their net worth!

CAN YOU SPOT THE MILLIONAIRE NEXT DOOR?

Who are the rich in this country?
What do they do?
Where do they shop?
What do they drive?
How do they invest?
Where did their ancestors come from?
How did they get rich?
Can I ever become one of them?

Get the answers in The Millionaire Next Door, the never-before-told story about wealth in America. You'll be surprised at what you find out....

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant

W. Chan Kim, Renée Mauborgne

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant W. Chan Kim, Renée Mauborgne Amazon Price: $20.75
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Customer Reviews:
Total reviews: 168 Average rating: 4.0 of 5

Strategy will always include opportunity and risk 5 out of 5 stars.
1 of 3 people found this review helpful.

Strategy:

1. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Companies need to go beyond competing. To seize new profit and growth opportunities, they also need to create blue oceans.

2. Put the clock forward 20 to 50 years and ask yourself how many unknown industries will exist. Surprisingly, many of the unknown industries will exist.

3. Value innovation is focusing on making competition irrelevant by creating a leap in value for your buyers and you company, thereby opening up new and uncontested market space.

4. Value innovation is neither cutting edge technology nor timing of the market. Value innovation occurs when companies align with utility, price, and cost positions. "If the companies fail to anchor innovation with value in this way, technology innovators and market pioneers often lay eggs that other companies hatch."

5. Blue ocean innovation seeks differentiation and low cost simulataneously. The goal is too drive costs down while simulataneously driving value up for buyers.

6. Utility alignment starts at the top. Production innovation may improve subsystem performance without impacting the company's overall strategy. The production costs savings do not realign the utility proposition of the company. The product cost saving reinforce strategic leadership validating the status quo. "Although innovations of this sort may help to secure and even lift a company's position in the existing market space, such a subsystem approach will rarely create a blue ocean of new market opportunity." Market opportunity results from changing the utility proposition.

7. Red ocean strategy assumes that an industrial structural condition are given and that firms are forced to compete within them, a structuralist or environmental determinism view. In contrast, value innovation is based on the view that market boundaries and industry structure are not given and can be reconstructed by actions and beliefs of industry players.

8. In red ocean, differentiation costs because fimrs compete with the same best practice rule. In recontructionist world, the strategic aim is to create new best-practice rules by breaking the existing value cost trade-off and thereby create a blue ocean.

9. Strategy will always include opportunity and risk.

New markets:

1. How to conceive a new market space: a. Look across alternative industries b. look across strategic groups within industries c. redefine the industry buyer group d. look across to complementary product and services e. rethink the functional-emotional orientation of the industry f. participate in shaping external trends over time.

2. Emotionally oriented industries offer many extras that add price without enhancing functionality. Stripping away these extras may create a fundamentally simpler, lower-priced, lower-cost business model that customer will welcome.

3. Products and services that have different forms but offer the same functionality are substitutes for each other. Alternatives include products and services that have different functions and form but serve the same purpose. Alternatives are broader than substitutes.

4. A strategic group is a group of companies within an industry that pursue a similar strategy. Strategic groups can be ranked in a rough hierarchy according to price and performance. Most companies focus on improving their competitive position within a strategic group. "The key to creating a blue ocean across existing strategic groups is to break out of this narrow tunnel vision by understanding which factors determine customer decisions to trade up or down from one group to another."

5. Individual companies in an industry often target different customer segments. An industry typically converges on a single buyer group. "Challenging an industry's conventional wisdom about which buyer group to target can lead to the discovery of new blue oceans."

6. Untapped value is often hidden in complementary products and services. The key is to define the total solution buyers seek when they choose a product or service. A simple way is to think about what happens before, during, and after your product is used.

7. All industries are subject to external trends that affect their businesses over time. Looking at these trends with the right perspective can show you how to create blue ocean opportunities. Most companies adapt incrementally or passively as events emerge. They pace their own actions to keep up with the development of the trend they are tracking. Key insights occur by discovering how trends will change value to the customer and impact the company's business model. Look for the value a market will deliver today to the value it will deliver tomorrow - "managers can actively shape their future and lay claim to a new blue ocean." The trends must be decisive to your business; they must be irreversible; and they must have a clear trajectory

Editorial Review:

Written by the business world's new gurus, "Blue Ocean Strategy" continues to challenge everything you thought you knew about competing in today's crowded market place. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, authors W. Chan Kim and Renee Mauborgne argue that lasting success comes from creating 'blue oceans': untapped new market spaces ripe from growth. And the business world has caught on - companies around the world are skipping the bloody red oceans of rivals and creating their very own blue oceans. With over one million copies sold world wide, "Blue Ocean Strategy" is quickly reaching "must read" status among smart business readers. Have you caught the wave?

Moneyball: The Art of Winning an Unfair Game

Michael Lewis

Moneyball: The Art of Winning an Unfair Game Michael Lewis Amazon Price: $16.47
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Customer Reviews:
Total reviews: 382 Average rating: 4.5 of 5

Editorial Review:

The Oakland Athletics have a secret: a winning baseball team is made, not bought.



I wrote this book because I fell in love with a story. The story concerned a small group of undervalued professional baseball players and executives, many of whom had been rejected as unfit for the big leagues, who had turned themselves into one of the most successful franchises in Major League Baseball. But the idea for the book came well before I had good reason to write it—before I had a story to fall in love with. It began, really, with an innocent question: how did one of the poorest teams in baseball, the Oakland Athletics, win so many games?

With these words Michael Lewis launches us into the funniest, smartest, and most contrarian book since, well, since Liar's Poker. Moneyball is a quest for something as elusive as the Holy Grail, something that money apparently can't buy: the secret of success in baseball. The logical places to look would be the front offices of major league teams, and the dugouts, perhaps even in the minds of the players themselves. Lewis mines all these possibilities—his intimate and original portraits of big league ballplayers are alone worth the price of admission—but the real jackpot is a cache of numbers—numbers!—collected over the years by a strange brotherhood of amateur baseball enthusiasts: software engineers, statisticians, Wall Street analysts, lawyers and physics professors.

What these geek numbers show—no, prove—is that the traditional yardsticks of success for players and teams are fatally flawed. Even the box score misleads us by ignoring the crucial importance of the humble base-on-balls. This information has been around for years, and nobody inside Major League Baseball paid it any mind. And then came Billy Beane, General Manager of the Oakland Athletics.

Billy paid attention to those numbers —with the second lowest payroll in baseball at his disposal he had to—and this book records his astonishing experiment in finding and fielding a team that nobody else wanted. Moneyball is a roller coaster ride: before the 2002 season opens, Oakland must relinquish its three most prominent (and expensive) players, is written off by just about everyone, and then comes roaring back to challenge the American League record for consecutive wins.

In a narrative full of fabulous characters and brilliant excursions into the unexpected, Michael Lewis shows us how and why the new baseball knowledge works. He also sets up a sly and hilarious morality tale: Big Money, like Goliath, is always supposed to win...how can we not cheer for David?

The One Minute Manager

Kenneth H. Blanchard, Spencer Johnson

The One Minute Manager Kenneth H. Blanchard, Spencer Johnson Amazon Price: $14.93
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Customer Reviews:
Total reviews: 166 Average rating: 4.0 of 5

Editorial Review:

For more than twenty years, millions of managers in Fortune 500 companies and small businesses nationwide have followed The One Minute Manager's techniques, thus increasing their productivity, job satisfaction, and personal prosperity. These very real results were achieved through learning the management techniques that spell profitability for the organization and its employees.

The One Minute Manager is a concise, easily read story that reveals three very practical secrets: One Minute Goals, One Minute Praisings, and One Minute Reprimands.

The book also presents several studies in medicine and the behavioral sciences that clearly explain why these apparently simple methods work so well with so many people. By the book's end you will know how to apply them to your own situation and enjoy the benefits.

That's why The One Minute Manager has continued to appear on business bestseller lists for more than two decades, and has become an international sensation.

Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics

Henry Hazlitt

Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics Henry Hazlitt Amazon Price: $11.16
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Customer Reviews:
Total reviews: 120 Average rating: 4.0 of 5

Great Book for Students! 5 out of 5 stars.
1 of 1 people found this review helpful.

I first heard about this book on "Pro Business With Dr. Mike Beitler," an internet-radio show about free-market capitalism. Hazlitt does not write like an ivory-tower academic; his work is easy to understand and a pleasure to read.

Read this along with Beitler's "Rational Individualism" book Rational Individualism: A Moral Argument for Limited Government & Capitalism.

David Jacobs

Must-Read For Politicians And Business Leaders 5 out of 5 stars.
0 of 0 people found this review helpful.

Every politician and business leader should be forced to read and understand Economics in One Lesson. Again and again, the classic mistake is made: pursuing a short-term policy that benefits only a select few at the expense of a long-term policy that could benefit many. It's why hybrid car policies can lead to more traffic and pollution. Why setting maximum prices for staples (such as milk) can lead to shortages of those staples. There are many more examples. Read the book. It's a quick read with a huge ROI.

Editorial Review:

A simple, straightforward analysis of economic fallacies that are so prevalent they have almost become a new orthodoxy.

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