4 Books To Read This Month

December Issue 2022

Irrational Exuberance by Robert J. Shiller

Irrational Exuberance is an amazing analysis done by one of the greatest economists of the 21st century. Shiller digs deep into the understanding of what causes speculative bubbles, what bursts them and what have we done in the past when this has happened. It evaluates different speculative bubbles throughout history including the bubble that finally burst in 1929, the speculative bubble that caused the Millennium Boom and the speculative bubble that led to the Ownership Society Boom. It is quite a hefty book full of graphs and data but it is a no doubt a book that should be read by everyone in order to understand how these speculative bubbles are driving the markets, especially when we have seen the same behavioral traits one time too many throughout history.

The Great Crash of 1929 by John Kenneth Galbraith

The great crash 1929 is Galbraith's take on the crisis which he himself lived through. It is a deeply economic book which explores everything during from the war to the Great Depression examining what ultimately led to "Black Tuesday". Despite what we have all heard about the 1920s, the roaring years where consumers were confident and expectant which inevitably ended with a loud crash striking America to its core, there were so many things in this book that are not common knowledge and that can completely shift your perception of how markets actually work. Ultimately it is important to read books as such that dissect such moments in history which tend to replicate themselves as years pass to understand what it is that we are doing wrong and what it is that we must change.

Liar's Poker by Michael Lewis

Liar's Poker tells the first hand experience that Michael Lewis had at Salomon Brothers at the time when Lewis Ranieri, the father of MBSs, begun his journey in risky financial instruments. Through his experience Michael Lewis paints a picture of how the world of Investment Banking was like in the 80s, how the floors were hierarchies, how the environment was... but most importantly he explains in grave detail the habitat that lead to the creation of mortgage backed securities and highly leveraged institutions. He discloses incredible information on Salomon Brothers, its rise and fall and everything in between.

Why Women are Poorer than Men and What We Can Do About It by Annabelle Williams

We all know about the pay gap when it comes to gender inequality but there is so much more. The world we live in is an incredibly gender biased place where women are condemned to be poorer than their male counterparts. This book was a truly eye opening experience showing every single aspect of life where we women are undervalued. You'll find information that is extremely valuable and useful such as that women tend to get higher interest on their mortgages, or that women are considered more risk averse and so they actually tend to perform better long term when it comes to stocks, or that women who are CEOs of company's tend to earn higher earnings than those companies run by men. It is a financial book which I believe every women should read, not only is there a great deal to learn from it but it is a useful tool to understand how are society works and how we can succeed within the boundaries that have been set out for us. Not only was this book extremely educational but as a young female I believe that it sparks some degree of motivation, a motivation to overcome these challenges.