Economist Robert Shiller is no apologist for the sins of financehe is probably the only person to have predicted both the stock market bubble of 2000 and the real estate bubble that led up to the subprime mortgage meltdown. But in this important and timely book, Shiller argues that, rather than condemning finance, we need to reclaim it for the common good. He makes a powerful case for recognizing that finance, far from being a parasite on society, is one of the most powerful tools we have for solving our common problems and increasing the general well-being. We need more financial innovationnot lessand finance should play a larger role in helping society achieve its goals.Challenging the public and its leaders to rethink finance and its role in society, Shiller argues that finance should be defined not merely as the manipulation of money or the management of risk but as the stewardship of society's assets. He explains how people in financial careersfrom CEO, investment manager, and banker to insurer, lawyer, and regulatorcan and do manage, protect, and increase these assets. He describes how finance has historically contributed to the good of society through inventions such as insurance, mortgages, savings accounts, and pensions, and argues that we need to envision new ways to rechannel financial creativity to benefit society as a whole.Ultimately, Shiller shows how society can once again harness the power of finance for the greater good. @ebsco
Introduction: Finance, Stewardship, and Our Goals -- Part One: Roles and Responsibilities - 1. Chief Executive Officers - 2. Investment Managers - 3. Bankers - 4. Investment Bankers - 5. Mortgage Lenders and Securitizers - 6. Traders and Market Makers - 7. Insurers - 8. Market Designers and Financial Engineers - 9. Derivatives Providers - 10. Lawyers and Financial Advisers - 11. Lobbyists - 12. Regulators - 13. Accountants and Auditors - 14. Educators - 15. Public Goods Financiers - 16. Policy Makers in Charge of Stabilizing the Economy - 17. Trustees and Nonprofit Managers - 18. Philanthropists -- Part Two: Finance and Its Discontents - 19. Finance, Mathematics, and Beauty - 20. Categorizing People: Financiers versus Artists and Other Idealists - 21. An Impulse for Risk Taking - 22. An Impulse for Conventionality and Familiarity - 23. Debt and Leverage - 24. Some Unfortunate Incentives to Sleaziness Inherent in Finance - 25. The Significance of Financial Speculation - 26. Speculative Bubbles and Their Costs to Society - 27. Inequality and Injustice - 28. Problems with Philanthropy - 29. The Dispersal of Ownership of Capital - 30. The Great Illusion, Then and Now -- Epilogue: Finance, Power, and Human Values.
