A call for judgment [electronic resource] : sensible finance for a dynamic economy / Amar Bhidé.
2010
HG181 .B525 2010eb
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Title
A call for judgment [electronic resource] : sensible finance for a dynamic economy / Amar Bhidé.
Author
Bhide, Amar, 1955-
ISBN
9780199781447 (electronic book)
9780199756070
0199756074
9780199756070
0199756074
Publication Details
Oxford ; New York : Oxford University Press, 2010.
Language
English
Description
1 online resource (x, 353 p.)
Call Number
HG181 .B525 2010eb
Dewey Decimal Classification
332.0973
Summary
Our prosperity requires the enterprise of innumerable individuals and businesses who exercise their imagination and judgment and bear responsibility for outcomes. And widespread enterprise is fostered through dialogue and relationships, not merely prices in anonymous markets. Yet modern finance blatantly neglects these necessary elements for enterprise. In the last several decades finance has become increasingly centralized, distanced, and mechanistic. Instead of many lending officers making judgments about borrowers they know, credit decisions are the output of the models of a few Wall Street wizards and credit agencies. This robotic centralized finance stifles the dynamism of the real economy and leads to recurring collapses. This work clearly explains how bad theories and mis-regulation have caused a dangerous divergence between the real economy and finance. The author takes apart the so-called advances in modern finance, showing how backward-looking, top-down models were used to mass-produce toxic products. Thanks to excessively tight securities laws and loose banking laws, anonymous transactions have displaced relationship-based finance. The author offers, tough simple rules for restoring relationships and case-by-case judgment: limit banks and all deposit taking institutions to basic lending and nothing else. This book is both a primer on the role of finance in a dynamic modern economy, and a cautionary tale about the pitfalls of banks functioning as highly centralized, mechanistic entities. It is essential reading for anyone interested in bringing the economy back to a point at which decisions can be made that foster organic economic growth without the potentially disastrous risks currently accepted by modern finance.
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Description based on print version record.
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Includes bibliographical references and index.
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Call for judgment.
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Table of Contents
Ordering the Innovation Game: Beyond Decentralization and Prices. The decentralization of judgment
The halfway house: coordination through organizational authority
Dialogue and relationships
Reflections in the financial mirror
Why It Became So. All-knowing beings
Judgment-free finance
Storming the derivative front
Liquid markets, deficient governance
Financiers unfettered
The long slog to stable banking
Not there yet
Finally on track
Derailed by deregulation
Restoring real finance.
The halfway house: coordination through organizational authority
Dialogue and relationships
Reflections in the financial mirror
Why It Became So. All-knowing beings
Judgment-free finance
Storming the derivative front
Liquid markets, deficient governance
Financiers unfettered
The long slog to stable banking
Not there yet
Finally on track
Derailed by deregulation
Restoring real finance.