Most of us would accept that recent large economic fluctuations have been caused by crashes of speculative bubbles in asset markets. For example, few would disagree that the most important cause of the global financial crisis in 2008 was the collapse of an unprecedented bubble in U.S. housing markets. However, the reasons why bubbles frequently occur in various financial markets, and why bubbles collapse are not always well understood. The book provides a new theoretical explanation of bubbles and crashes to help answer questions relating to how asset bubbles come about, why they persist, and the causes of the subsequent crashes.
In this innovative volume, Taisei Kaizoji proposes a stock market model in which noise traders and fundamentalists who follow the traditional asset pricing model coexist. A distinctive feature of this study is that the so called noise-trader's behavior is modeled in a framework of Keynes' beauty contest metaphor. The author elucidate a mechanism in which (i) noise-traders' herd behavior gives cause to a bubble, and (ii) their trading momentum prolongs the bubble, (iii) the bubble inevitably results in a crash, and (iv) the cycles of bubble and crash are repeated. The results give a possible theoretical solution to the equity premium puzzle. This model will deepen our understanding of the mechanism of bubbles and subsequent crashes and help to bring about an innovation in financial economics which allow us to consider the laws of capitalist economies in a new light.
Since the US stock market crashed on October 19, 1987, many studies have been conducted to learn from this experience in the hopes of avoiding a similarly adverse future fall. The book, originally published as a special issue of the Journal of Financial Services Research, considers some of the important policy adjustments that have been implemented in the wake of the 1987 crash. Taken separately and together, these five papers offer a synthesis and summary of the most important policy innovations that have evolved since the largest single-day decline in stock market history.
Attempting to reveal the real causes of the 1929 stock market crash, Bierman refutes the popular belief that wild speculation had excessively driven up stock market prices and resulted in the crash. Although he acknowledges some prices of stocks such as utilities and banks were overprices, reasonable explanations exist for the level and increase of all other securities stock prices. Indeed, if stocks were overpriced in 1929, then they more even more overpriced in the current era of staggering growth in stock prices and investment in securities. The causes of the 1929 crash, Bierman argues, lie in an unfavorable decision by the Massachusetts Department of Public Utilities coupled with the popular practice known as debt leverage in the 1920s corporate and investment arena. This book extends Bierman's argument in an earlier book, The Great Myths of 1929 and the Lessons to Be Learned (Greenwood, 1991), in which he discussed and refuted seven myths about 1929 but could not explain the crash. He now believes he has a reasonable explanation. He also examines the actions of Charles E. Mitchell and Sam Insull and their subsequent unjust criminal prosecution after the crash of the 1929 stock market.
From a bright new talent comes this debut novel about a young woman who travels for the first time to her mother's hometown, and gets sucked into the mystery that changed her family forever
Mattie Wallace has really screwed up this time. Broke and knocked up, she's got all her worldly possessions crammed into six giant trash bags, and nowhere to go. Try as she might, Mattie can no longer deny that she really is turning into her mother, a broken alcoholic who never met a bad choice she didn't make.
When Mattie gets news of a possible inheritance left by a grandmother she's never met, she jumps at this one last chance to turn things around. Leaving the Florida Panhandle, she drives eight hundred miles to her mother's birthplace-the tiny town of Gandy, Oklahoma. There, she soon learns that her mother remains a local mystery-a happy, talented teenager who inexplicably skipped town thirty-five years ago with nothing but the clothes on her back. But the girl they describe bears little resemblance to the damaged woman Mattie knew, and before long it becomes clear that something terrible happened to her mother, and it happened here. The harder Mattie digs for answers, the more obstacles she encounters. Giving up, however, isn't an option. Uncovering what started her mother's downward spiral might be the only way to stop her own.
Hilarious, gripping, and unexpectedly wise, The Art of Crash Landing is a poignant novel from an assured new voice.
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