The real business of finance, as the process by which the financial sector has gained an increasingly dominant and often noxious economic and political role during the last few decades. In an 1814 letter, thomas jefferson complained that the financial sector of his day was populated by adventurers. Other peoples money professor john kay professor wouter. Sep 22, 2015 kay s insistence on stepping back, on judging finance by the humdrum standards of any other industry, with its selfserving mystique and aura of inevitability stripped away, makes other people s money one of the best two or three books ive read on the crash. Feb 02, 2016 prof john kay is an economist whose career has spanned the academic world, business and public affairs. Oct 27, 2015 in other people s money, john kay shows, in his inimitable style, what has gone wrong in the dark heart of the finance sector. You can order other peoples money uk edition from this website in hardback or paperback for.
In other people s money, john kay shows, in his inimitable style, what has gone wrong in the dark heart of the finance sector. Charles baglis other peoples money in a new book, new york times reporter looks at tishman speyers acquisition of stuyvesant townpeter cooper village may 20 issue. There has been a string of encouraging news lately for the beleaguered broadcast business, and not a moment too soon. I will not hesitate to draw lessons from these industries. Finance is a business like any other, and should be judged by reference to the same principles the same tools of analysis, the same metrics of value that we apply to other industries, such as railways, or retailing or electricity supply.
I was most impressed by how he explained the role of cds credit default swaps, moral hazard, and cdo collateralized debt obligation during the financial crisis in 2008. Currently, he is a visiting professor of economics at. The book attacked the use of investment funds to promote the consolidation of various industries under the control of a small number of corporations, which brandeis alleged were working in concert to. Objects of gold and silver were used in religious activities, as sacrifices and gifts to gods and priests and. In other peoples money, john kay shows, in his inimitable style, what has gone wrong in the dark heart of the finance sector. Kay is the author of nine previously published books and coauthor of the british tax system with mervyn king. John kay deciphered the complicated world of finance and presented in an intriguing and logical way. Apr 21, 2016 in other people s money john kay shows in his inimitable style what has gone wrong in the dark heart of finance. Peter thiel, hulk hogan, gawker, and the anatomy of intrigue, 2018, etc. Oct 01, 2015 the finance sector of western economies is too large and attracts too many of the smartest college graduates. As an alternative, the kindle ebook is available now and can be read on any device with the free kindle app. Other peoples money and how the bankers use it is a collection of essays written by louis brandeis published as a book in 1914.
Kay s insistence on stepping back, on judging finance by the humdrum standards of any other industry, with its selfserving mystique and aura of inevitability stripped away, makes other people s money one of the best two or three books ive read on the crash. Yet kay is no angry jeffersonian agrarian, but rather an academic economist with a weekly financial times. The report asks whether investors in these schemes now get appropriate protection. His brilliance in the following video not only explains the moral problem with using other peoples money, but he also explains why it leads to poor results. It is difficult to get a man to understand something, when his salary depends on his not understanding it. It is no criticism of the heroic pair to observe that they are not as interesting as the guys you loved to hatelike john gutfreund and john meriwether in liars pokeror struggled to lovelike the big shorts steve eisman and michael burry.
Industry insider john kay argues that the finance world s perceived profitability is not the creation of new wealth, but the sector s appropriation of wealth of other people s money book. If some members of that closed circle make extraordinary profits, these profits can only be made at the expense of other members of the same circle. Oct 11, 2015 the charge is an old one that has taken on new relevance in the wake of the 2008 crisis. Milton friedman on other peoples money competitive. Kays insistence on stepping back, on judging finance by the humdrum standards of any other industry, with its selfserving mystique and aura of inevitability stripped away, makes other peoples money one of the best two or three books ive read on the crash. Other peoples money, by john kay the new york times. In order to use other peoples money, one must first take it from them. A financial times book of the year, 2015 an economist best book of the year, 2015 a bloomberg best book of the year, 2015 the finance sector of western economies is too large and attracts too many of the smartest college graduates. Other peoples money 2015 offers a detailed breakdown of the financial sector. John kay, a distinguished economist with wide experience of the financial sector, argues that the industrys perceived profitability is partly illusory, and partly an appropriation of wealth created elsewhere of other peoples money.
Four points media, freedom communications and mcgrawhill found ready buyers in sinclair and scripps for their tv groups in a flurry of activity. John kay echoes the sentiment, noting that as exchanging bits of paper cannot make profits for everyone, it is very likely that much of finance. A financial times book of the year, 2015 an economist best book of the year, 2015 a bloomberg best book of the year, 2015 other peoples money is not merely another broadside content to denounce finances dysfunction, but rather a masterly attempt to locate its various origins and connect them with analytical and theoretical rigor. Author john kay lectured in economics at oxford from 1971 to 1978, is visiting professor of economics at the london school of economics, and is a regular editorial contributor to the financial times. John kay, is a visiting professor of economics at the london school of economics and a fellow of st john s college, oxford university. Department of economics and centre for macroeconomics public lecture. The professor has published his report at the wrong time of the year.
Other peoples money is an engaging and informative narrative that circles but does not quite prove this central point. Money scale loms and examined the love of money with pay satisfaction and other measures in the usa, china, hong kong, spain, taiwan, the uk and other geopolitical entities e. Other peoples money quotes showing of 34 the great muckraker upton sinclair had expressed a deep insight into the relationship between the world of ideas and the world of practical men. They rely on the law, rather than on their own expertise, to give them appropriate protection. Currently, he is a visiting professor of economics at the london school of economics, a. As these three attributes are not always complementary, he is the rarest of breeds. In other peoples money john kay shows in his inimitable style what has gone wrong in the dark heart of finance. Other people s money and how the bankers use it is a collection of essays written by louis brandeis published as a book in 1914. Other peoples money is not merely another broadside content to denounce finances dysfunction, but rather a masterly attempt to locate its various origins and connect them with analytical and theoretical rigor. Other peoples money by john kay overdrive rakuten overdrive. Financialization over the past three decades has created a structure that lacks resilience and supports absurd volumes of trading. Until then, the peoples money is a call to arms for the people to be heard, an ultimatum for a grossly outoftouch american political system, and one of the most provocative, important, informed, and yet hopeful.
He bolsters this theory with a wide array of perspectivessome. The theme of broken governance and accountability is echoed in economist john kays other peoples money. John kay, with wide practical and academic experience in the world of finance. He was the first dean of oxfords said business school and has held chairs at london business school, the university of oxford, and the london school of economics. Other peoples money deals with the state of the financial services industry. Jul 23, 2012 john kay has got one shortterm decision wrong. 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. He is a director of several public companies and contributes a weekly column to the financial times. The business and investment world is either on holiday or distracted by the. Librivox recording of other peoples money, by louis d. Yet kay is no angry jeffersonian agrarian, but rather an. A financial times book of the year, 2015 an economist best book of the year, 2015 a bloomberg best book of the year, 2015 other people s money is not merely another broadside content to denounce finance s dysfunction, but rather a masterly attempt to locate its various origins and connect them with analytical and theoretical rigor. Kay provides by way of context a panoptic overview of the history, evolution and structure of the financial system in the. John kay, a distinguished economist with wide experience of the financial sector, argues that the industrys perceived profitability is partly illusory, and partly an appropriation of wealth created elsewhere of other people s money.
A financial times book of the year, 2015an economist best boo. About the author john kay is a visiting professor at the london school of economics and a fellow of st johns college, oxford. Sep 22, 2015 kay holds forth for increased regulation that is focused more on the interests of consumers and less on the integrity of market processesin other words, the more vigorous application of doddfrank and other regulatory regimes that congress is now hurriedly trying to dismantle. Sep 01, 2015 john kay, economist and financial times columnist, asks in his book other peoples money why financial services are so profitable.
Other peoples money, john kay 9781781254455 boeken. Common sense suggests that if a closed circle of people continuously exchange bits of paper with each other, the total value of these bits of paper will not change much, if at all. John kay is a british economist who once taught economics at oxford and is now a professor at the london business school and an editorial contributor to the financial times. The theme of broken governance and accountability is echoed in economist john kay s other people s money. Kay report has merit but may be out of touch business the. An exploration of the importance of clarity through calmness in an increasingly fastpaced world. Inside the housing crisis and the demise of the greatest real estate deal ever made by charles v. Austinbased speaker and strategist holiday conspiracy. We study risk taking on behalf of others an experimentin on a large random sample. Prof john kay is an economist whose career has spanned the academic world, business and public affairs. Then, once that money is taken, it is rarely spent as carefully as the person who earned it would spend. Whether his specific proposals are the best approach, policy.
Download for offline reading, highlight, bookmark or take notes while you read other peoples money. Industry insider john kay argues that the finance worlds perceived profitability is not the creation of new wealth, but the sectors appropriation of wealth of other peoples money. Patrick honohan on an economist who argues that the world financial crisis has been contained but not settled. Sep 25, 2015 other peoples money is an engaging and informative narrative that circles but does not quite prove this central point. First, a disclaimeri think john kay is a quite brilliant economist, thinker and writer. John anderson kay, cbe, frse, fba, facss born 1948 is a british economist. The real business of finance by kay, professor of industrial policy at the london business school and fellow john isbn.
Everyday low prices and free delivery on eligible orders. According to john kay, a visiting professor at the london school of economics and a regular contributor to the financial times, the finance sector is too large and too powerful. The real business of finance, which provides an accessible expose of the complex and layered modern financial system and the failure of laws and regulations to protect the public. The book attacked the use of investment funds to promote the consolidation of various industries under the control of a small number of corporations, which brandeis alleged were working in concert to prevent competition. John kay is a visiting professor at the london school of economics. John kay in a discussion with marion terrill, transport program director at the grattan institute. About the author john kay is a visiting professor at the london school of economics and a fellow of st john s college, oxford. Pdf i will risk a strangers money, but not my own or my. John kay, a distinguished economist with wide experience of the financial sector, argues that the industry s perceived profitability is partly illusory, and partly an appropriation of wealth created elsewhere of other people s money.
Financial support for older people, in particular pensions, has been protected from government spending cuts while support for young people, including the child trust fund, has been cut or abolished. The financialisation of the economy tracy brown hamilton on march 16, 2016 0 comments we all depend on the finance sector. The real business of finance by john kay online at alibris. Kay report has merit but may be out of touch business. The finance sector needs to be reminded of its primary purpose. The charge is an old one that has taken on new relevance in the wake of the 2008 crisis. The real business of finance, as the process by which the financial sector has gained an increasingly dominant and often noxious economic and political role during the last few decades financialization activities absorb the efforts of many of the best graduates from the top universities and. We need it to store our money, manage our payments, finance housing stock, restore infrastructure. Bloomberg view a challenging book that will add to ongoing discussion and debate. Sep 27, 2016 other people s money by john kay, 9781610397155, available at book depository with free delivery worldwide. Other peoples money posted on august 28, 2015 by diane coyle catching up with postholiday stuff has slowed me down, but i finished john kays new book. His 2015 book other peoples money should be added to the long and sagging bookshelf on how the nature of the financial services industry here denoted fsi, and including both commercial banking and shadow.
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