fainancial

I thought this book pointed out many types of situations and gave good ideas and strategies for avoiding problems both while you are living and after you die and leave your assets to your beneficiaries. I did, however, feel that a lot of the examples were geared for those with significant estates. Most of the examples discuss people with estates well over $1,000,000. With that being said, even though my estate doesn't come close to this amount, the author gave me a lot to think about and I felt he had excellent advice -- even if all of it didn't apply to my particular situation.

In my opinion, no matter how big or small your estate is, this book is worth the read if you are planning your estate. I feel that everyone has something to learn from the various situations the authors discuss in their book. Thank you Gerald and Jeffery Condon for being the eyes and ears from beyond the grave and helping us all learn from yours and your many clients mistakes.

This book presents a lot of potentially confusing information in an easy-to-read format with practical examples. It apporpriately encourages you to use the book as a starting point for talking with an estate planning professional. This isn't a "how to" book. You'll be a much more informed consumer of estate planning services if you read this book

The #1 reason I bought this book compared to other estate book is because of the wonderful reviews. This is the second estate book that I've read. Reading this book from cover to cover says it all. It is a fantastic book on estate planing. The first estate book left me a bit comfused, but after reading this book I understand it all. Don't make a will or living trust without first reading this book. It has human nature emotions and question that you are too scared to ask. It even have the consequences of making decision based on other people experience.

There is a bitter irony to the heads of PriceWaterhouseCoopers issuing a publication about inspiring trust in the public in large corporations in the wake of Enron and Worldcom scandals when PwC constantly undermines the trust of its own employees. With an infrastructure that makes it nearly impossible for employees to find their own project work and employment practices that left thousands of employees without a job and insufficient experience to get another one (while still continuing to hire new employees), PwC does a horrible job on taking care of those who work for them. In addition, they are just another example of a company that engages in the same shady, conflict-of-interest business practices as Arthur Andersen, yet they just have not been caught yet. Yet, here they are, trying to issue some sort of definitive work about restoring public trust. If a company like this shows no understanding of how to take care of their own employees, how can one even remotely think that they have any business providing a framework of how to take care of the public.

Building Public Trust is a thoughtful reflection on the failure of corporate accounting to predict the collapse of Enron and other companies. Its authors - including the ceo of PricewaterhouseCoopers and an ex-professor from Harvard Business School provide a welcome analysis of what's missing in the world of earnings reports. While some of their suggestions state the obvious - that managers should be honest people, for instance - others are more daring. DiPiazza and Eccles propose, for instance, that the internal data managers use to make operational decisions within their company be made available externally. The authors also suggest that each industry follow sector-specific rules, and that accountants be granted more flexibility when they write their audit opinions to reflect what they Really think of the numbers. Let's hope some of our lawmakers take the time to read this.

The public trust in corporate America has been shaken in the wake of several recent accounting scandals and, as a result, the capital markets are in upheaval. There is, rightfully so, a public outcry for reform - the government has cranked up its regulatory machine and members the class-action plaintiff bar are sharpening their litigation pencils. Many question, justifiably so, whether such attempts at reform are the legal equivalent of putting a bandage on a gunshot wound. In addition, investors and other stakeholders query whether there can be any meaningful reform to the extent that special-interests and their representatives (lawyers and accountants) are successful in jockeying for position in these efforts.

Messrs. DiPiazza and Eccles present a compelling blueprint for wholesale restructuring of corporate reporting and the concomitant rebuilding of public trust in the capital markets. The foundation for their model is built on the values of transparency, accountability and integrity. Their model -- development of a global GAAP, development and application of industry-specific standards, and establishment of guidelines for disclosure of company specific information -- makes sense given the expansion of capital markets across country-specific boundaries, but also is timely given the wide-availability of enabling technology (i.e., the Internet and XBRL).

Meaningful reform cannot be had solely through governmental reform, the lobbying of special interest groups, self-regulation or lawsuits by regulators and disgruntled investors. The end results will likely be half-baked attempts to address the symptoms of the breakdown in corporate reporting and the capital markets, rather than development of a cure. Accordingly, DiPiazza and Eccles stress that meaningful reform through development of their three-tiered model must be had through open dialogue and lines of communication with all members of what they term as the "Corporate Reporting Supply Chain" which, in a nutshell, includes all stakeholders in the capital markets.

"Building Public Trust: The Future of Corporate Reporting" provides, in plain English, a detailed description of the problems plaguing corporate reporting and roadmap to a meaningful solution. The road to reform, however, is long and, as DiPiazza and Eccles suggest, requires that the journey (read: participation) be undertaken by ALL members of the Corporate Reporting Supply Chain. The book is a must read for corporate directors and officers, regulators, lawyers, accountants, analysts, the investing public and all other persons who (or whose clients) have a stake in the smooth functioning of the capital markets.

The time for open debate on reform is now. It is up to members of the "Corporate Reporting Supply Chain" whether they want such reform to take the form of a lecture leading to mandates by the few, or an open dialogue leading to a consensus by the majority. This book provides its readers with a grounding for developing the tools to accomplish the latter...

This is absolutely one of the most interesting and informative books on our industry I've read in a long time.

One of my biggest complaints about books about our industry is that many authors suggest ideas with little back up or prescriptive methods of application. I have been unable to put this book down. The logic and organization of the book is easy to follow, and the techniques make sense. I find every section has a practical application to my business. I will immediately apply many of these techniques and ideas to my business.

This book is a great value. Where else can you get these kinds of ideas, and where else can you get access to the real pros. This is a great book for anyone in the business, whether an advisor, sales assistant, manager, or anyone else related to the business.

This book sets new standards in the industry. The best advisors in the business share their best practices--something every individual in the business should learn.

I wish I had read this book about ten years ago. I can only say that the techniques in the book are life-changing. I have applied the techniques to many areas of my life in addition to the financial part. I recommend the book to everybody I talk to... Highly recommended to anybody who wants to make a change in their life, financial or otherwise.

The best part of the whole thing is that you can completely reorient your life, money, health, happiness, and everything with this one book.

What a wonderful way to make positive yet painless changes! Thank you so much, Victor!

Victor does an excellent job of giving a simple, step-by-step method for completely changing your life. No previous knowledge is required, nor is any faith or belief that this method will even work! Disbelieve if you like, but just try it out as an experiment. It really does work, and surprisingly fast. The author is a little pedantic and tends to repeat himself to make a point... or convince you. Otherwise, this is one of the best books I've ever read. "10" from beginning to end.

A very enjoyable read! Mr. Boc's points are just plain good livin' in my opinion. To dream, set goals, work hard and visualize may seem like the only ingredients for success, but Mr. Boc proposes a far deeper level of growth. With humor and insightfulness, he has challenged humanity to try this method and truly experience happiness. Changing reality may seem like delusion, but don't be deceived into missing out on what may be the best understanding and experience of life! My view of myself in this world continues to improve as a result of this book.

I am about halfway through this book, but so far I enjoyed Frank Partnoy's first book, "FIASCO: Blood in the Water on Wall Street", much better. FIASCO was mainly an auto-biographical account of Partnoy's career at Morgan Stanley. Writing about his own life afforded Partnoy the opportunity to be more anecdotal and humorous about his subject matter. In this book, his focus is on scandals that made the headlines, or even worse, were suppressed from greater public knowledge. (Enron, LTCM, Orange County, the Salomon Bros Treasury auction scandal, etc).

He recants these tales with tongue in cheek humor, and he translates finance-geek-speak into a language which people outside of the business can understand. However, in his Vernacular translation, he loses some of the wind of the real story. Maybe its because I am in the business, so no details need to be spared for my benefit, but I would have preferred reading more technical accounts.

At any rate, Partnoy is a crusader, out to teach the world about the dangers of financial products. Frankly, I think he goes to far in his ranting, and this book is merely a vehicle for him to advance his agenda of reform and regulation. Its true that some people have exploited the market for less than altruistic purposes, but the truth is that derivatives have been more beneficial than harmful to the global financial system. To tell the tale all of the evil in the financial markets without mentioning the good is misleading.

This book is an absolute must read if you want to understand Wall Street shenanigans. Partnoy has done a phenomenal job of demystifying the world of swaps, derivatives and other exotic financial instruments. Even better, he shows how investment banker antics have affected Main Street inhabitants including yourself. How did Orange County and so many other municipalities get so deeply in trouble? The author explains.

I have a Ph.D in business and many finance courses under my belt, but I never quite understood the systemic dangers of the 'financial innovation' that is sweeping our markets. Now that I have, I will sleep much less well at night.

Partnoy describes the evolution of exotic instruments and the characters involved in this evolution. How CS First Boston made securites of virtually any type of debt, Salomon pioneered the CMO and so on. He details the specific wrongdoings of companies like Enron, Global Crossing and WorldCom. He shows you the enabling role played by gatekeepers like accounting firms, law firms, analysts and credit rating agencies.

Even more important, he shows you exactly how the collusion happened and why. He gives you both an aerial view of the markets and a down-in-the-trenches description. I often wondered why, in efficient markets, participants voluntarily involved themselves in such convoluted transactions that had high costs in terms of record-keeping and fees. The answer, as Partnoy shows, is that virtually all of these arrangements permit some set of parties to subvert law or regulation or both. This is true domestically and internationally.

He graphically describes how lobbying keeps regulators at bay and the venality and ineffectuality of politicians. The chairperson of the Commodities Futures Trading Commission, for example, exempted important parts of Enron's business from regulation and, just weeks later, joined Enron' board. There are many such stories that show exactly how self-serving our legislators and regulatory guardians are.

My quibbles are minor. While Partnoy is clear, his language is colorless. Perhaps his legal background has something to do with this. Given the strength of his material and the depth of his research, he could have made this book a popular bestseller if he had used more forceful colloquial expression.

Also, he does not talk at all about the role of technology in this evolving mess. Greedy, incredibly smart bankers have always been with us. What has permitted them to have this huge impact now is the ability of computers to churn massive amounts of data, pick out the faintest of patterns and keep records of incredibly complex transactions involving dozens of parties over vast stretches of time.

This said, this is the best book I have yet come across that explains how and why large scale financial malfeasance happens. And why it is hardly ever punished. You will understand why the perpetrators of Enron, Global Crossing, Adelphia, WorldCom, Sunbeam and so many others will walk and hold on to their vast gains. Start praying that there is justice beyond our courts.

POSITIVE: In-dept overview of what happend in the last 15 years in "high finance". The authors knowledge on the topics can hardly be beaten. Author pretty harsh in critisicing Moodys, CDOs etc. Very interesting findings (e.g. trading profits at Enron, harsh treatment of Quattrone). The author provides some good solutions in the finance world at the end of the book.

NEGATIVE: Value creation, especially of derivatives, is not mentioned in the book. Thus, book rather critical. Book not as readable as FIASCO due to more difficult topics (and NOT authors fault).

This book provides a large amount of information at a faily basic level. The information provided was useful. The book gives a broad overview of the industry and provides guidance for those considering a career in financial planning. Use this book as a starting point if you are considering a financial planning career.

This is a great resource for those who are looking for an understanding of what the industry is all about and step by step advice on how to enter the profession. Nancy's book was not the first book I read on Financial Planning. I'd read probably two or three others before she came out with her book and still had lots of questions about the nuts and bolts. I loved the book and found it very comprehensive. As a career changer, my biggest questions revolved around pros and cons of the various educational options and the process to move into the field. The chapter that discussed "planners who have been in the industry five years or less, and how they made the transition" was very enlightening for me.

Nancy's approach to the profession is definitely others-focused (you might say altruistic). You won't learn how to be a top producer from her narrative, but if you're looking for a multitude of insights into a profession that can be challenging, exciting, fulfilling, and rewarding through the service you provide to others, this is definitely the book. For me it was exactly what I was looking for.

Anyone who is interested in the career of a financial planner should consider Nancy Langdon's book the most complete resource. She covers every aspect of the career--the good and the bad. This book isn't what you'd expect, it tells the truth.

What I like most about the book is the "sensitive financial planning" ethic and how financial planners differ from brokers.

This book sees the career of financial planning exactly as it is...you will be able to assess financial institutions for what they really are rather than relying on just their marketing tactics when deciding on which company is best for you.

I highly recommend this book for anyone who is interested in financial planning--no other book comes close!

7 weeks ago I aquired a hard cover copy of the original version of Joe Karbo's The Lazy Mans Way To Riches,it took me 2 days to read,and put his ideas into action and i have to admit by the 3rd week i have earned,a very high 5 figure sum of lovely cash,more than i earn in a single year's salary.

I firmly beleive within the next 12 months i can and will earn over Million.I have been astounded,if you need money, buy this book and make it work for you,like i have for me. GOOD LUCK

I've read about 75 of the best known self-help books, and TheLazy Man's Way to Riches is the most unusual one, and it actuallyworks! If you want to actually accomplish things, get it - but get the ORIGINAL, 1973 edition, which AMAZON.COM has in paperback and hardcover. Avoid the re-issue or the "Roadmap" workbook, both written 13 years after Joe Karbo's death. They are loaded with extraneous writing that sometimes contradicts the original text within.

I have had a copy of this book since 1995 and it has had an amazing effect in my life. Whenever I've had problems I've cracked this book open and gotten things moving ahead again! I've given many copies away to friends and family...no wonder over 3 million copies have sold! I'm a big fan of the lazy way!

Financial engineering as a profession has exploded in the last 15 years, and has enlisted the minds of mathematicians, physicists, economists, engineers, as well as course everyday brokers and traders. This book is geared towards a mathematical audience, as one will need a background in the numerical solution of nonlinear partial differential equations and an understanding of stochastic processes (at the level of the Ito calculus). The author does devote a chapter to partial differential equations for readers who need it. Those readers with such a background will find the book very straightforward to read, especially those readers who are mathematicians or physicists, and are desiring to enter into the exciting field of financial engineering. The book is out of print, and an updated collection of books has been written by the author, but this one could still serve as an excellent introduction to the subject. In addition, this book has exercises, while the updated ones do not. Most of the results in the book can be used to develop practical trading strategies, and so the book qualifies more than being a mere academic exercise.

The author's approach is not always rigorous from a mathematical standpoint, but this is fine since the emphasis is on developing insight into the principles behind the subject, such as the principle of arbitrage, the idea of hedging, etc. Early on, the author shows what is involved in removing oneself from the Black-Scholes world, with clear explanations of jump conditions, time-dependent volatility, and path dependency. The discussion on the valuation of American style options using partial is illuminating considering this is typically done with Monte Carlo simulations. Another interesting part of the book is the derivation of the partial differential equation for the market price of volatility risk. In addition, the author gives an overview of how to speculate with options, a topic that is truly removed from the Black-Scholes world, but of course is taken up with enthusiasm by many traders the world over. This discussion is very interesting, in that it sheds light on just how subjective preferences enter into options trading; but it also shows that such preferences can be treated quantitatively. Assuming the asset price follows a random walk, the author derives an equation for the present value of the expected payoff, an equation that differs from the Black-Scholes equation in having the drift rate rather than the interest rate in the delta term. This risk-neutral valuation is dealt with in more detail in the author's discussion on portfolio management.

The author uses spreadsheets and Visual Basic to perform some of the numerical calculations, with many included on the accompanying CD. This is done no doubt to maintain the connection with practical trading. All of the mathematics and numerical studies could be done more efficiently though with a high-level programming language, such as Mathematica or Maple. The graphical capabilities of these languages will allow the reader to view the results of the calculations on-the-fly.

Some omissions in the book include discussions on energy and weather derivatives, but these are covered, although in not too much detail, in the author's more recent books. Also omitted is any discussion on bandwidth markets or derivatives trading in network capacity. This is also a new area, but one that is growing rapidly. Discussion of it will no doubt be included in future books on derivatives.

I myself find a hard time writing a review about this book, and thus not to be misleaded by the stars I gave. Perhaps what's preventing it from 5 stars is the nature of the task rather than the author's capability.

The book is so comprehensive such that it's going to be very difficult if not impossible to find the book with greater coverage on the subject. The level of discussion should be on the intermediate level or first-year graduate students. A good background on basic derivatives or mathematics ( algebra, differential calculus, and statistics) will proof sufficient in most of the cases to follow the mathematical detivations in the book. Working out the exercises at the end of each section will be a great pleasure to all the derivative students. Unlike many other text books which provided many difficult but interesting exercises but never the solutions elsewhere as if it's the author's intention to keep the secret with themselves forever, the Book's Instructor Manual with the solutions to all the exercises is separately available through the Publisher. However, I feel that the unexperienced readers should spend some time with a more directly accessible derivatives book such as Hull's classic ( Options, Futures, and Derivatives Securities ) before approaching this book. Once this is done, you'll realize that the Author knows the subjects very well and has his interesting ways to take you to a very heart of the concepts.

I think there are 2 limitations of this book that should be put forward. Some mathemetical concept on modern derivative pricing theory such as martingale or measure theory are only scantly touched throughout the book. Yet I have a good perception that it;s the Author's intention to follow his preferred PDE approach on derivatives pricing and to make a book more directly accessible to a practitioners i.e., derivative traders or researchers, rather than the full academic researchers. Also the treatments on interest rate through sufficiently comprehensive, is far from completion. However, the literature on interest rate derivatives is very farflung such that it should be treated in a place of it's own. I myself don't really look at this as a handicap on this book.

All in all, I can't find any good reason why this book shouldn't be on derivatives section shelf.

This is actually a wonderful introduction to the theory of derivatives and personally I find it to be a little humorous on occasion as well. There is definitely some ego here but it does not interfere with the author's sincere attempt to present the material in such a way that it can be understood easily by anyone with the required math background. That of course is the problem for some: this book requires a fairly extensive math background to be really understood. Fakers may try, but the successful will have a pretty good background in mathematics. That said, the discussion of stochastic calculus is better than many have led the casual onlooker to believe. It is not rigorous but is perfectly sufficient for the subject matter at hand. A good understanding of the material in this book will make the reader truly dangerous in the realms of the PDE theory of derivatives.

In the 18th century, a Scotsman named John Law created a financial system using paper in place of coin with which to conduct business. He had come by the system not only through his unique financial acumen, but also through his talent for gambling. He was a man who could figure the odds, then turn them to his greater advantage.

An unfortuante duel in London prevented Law from introuducing his system to the English government, who hounded him for years over the death of Edward Wilson, a man with influential friends and family. Arrested and imprisoned, Law managed to escape to the continent. During his travels he met Katherine Seigneur, an Englishwoman of noble birth married to a Frenchman. True to his gambler's nature, he fell in love and she left with him, living as his wife for the rest of his life, in many cities on the continent. During their travels, Law tried over and over to convince heads of government that his financial system could be the answer to national money problems.

It was after the death of Louis XIV that he caught the ear and imagination of the Duc d'Orleans, regent of France during the minority of Louis XV. Starting fairly small at first, Law was allowed to institute a national bank and print paper money. Eventually he became the chief financial minister and head of the Mississippi Company -- a trading company whose very existence seemed to have disappeared from history. Although Law was remarkably intelligent about things financial, he seems, however, to have a flawed understanding of human nature. In the end, all of his creations tumbled over the edge, and the rise and fall of John Law was over and done in a flash.

For a career that affected most of western Europe, it seems that little is taught about him and his system. A book such as this adds much to one's knowledge of 18th century European history and the financial world of the time. It is a rare find and worth the read.

This really is the most amazing story. Janet Gleeson's Book Millionaire has peiced together the story of John Law's life and legacy in the most most amazingly readable book. It really brings to life France in the early eighteenth century, as well as easily explaining the quite complex financial situation that he established

John Law as born into a respectable Scottish family in the late 17th century but soon showed a turn for being able to calculate odds mathematically and so turned to an easy life of gambling in London. As a result he ended up killing another man in a duel. It meant he could never return to England and he escaped to the continent where he pursued a rather dissolute life ending up in France where most of this story takes place.

His mind was always calculating the odds and so he was able to turn himself easily to the world of finance. He realised that the paper money which had always been a problem could be given credibility if backed by gold. To this end he convinced the King of France and his Bank was born - despite opposition from the French nobles who tried numerous times to undermime him. Law then managed to introduce the first 'stock exchange' with the introduction of the "Mississippi scheme," a innovative and somewhat risky business of share offers based on a wild and unstable scheme of settling America. This spawned the greatest bull market in history and its drastic crash.

I cannot emphasise enough how amazing this book is, Gleeson writes her story with ease and charm. The characters are not dry and remote, she has clearly researched her subject well and is able to shed light on actions and reactions - even down to small details such as the backlash against Law by the French public and how this affected various people in the street as well as Law and his family. She really brings her subject to life.

Another thing I love about Gleeson is that she is not a 'tabloid' style historical writer who looks to exploit her readers with cheap thrills. She lets her subjects show themselves. I think the closest writer to her today might be Giles Milton (Big Cheif Elizabeth). Milton tends to inject a lot more humour in his books whereas Gleeson doesn't play for laughs.

Gleeson has managed to make an incredible story come to life - well worth reading - highly recommended!

This is a neat short biography of the man who is generally credited with the establishment of the French fiduciary system as we know it today on which all financial activity rests: paper money.
Now, Mr. Law was a serious player: great intelligence, great flair, solid acumen, and sharp sense of business and opportunity.
Law was endowed with a brilliant intellect and curious nature but he was not exactly a book worm. Far from this. Our man put the "grr" in swinger long before Austin Powers did.
Although Scottish, Law was not exactly known for his thrifty nature and avarice. Quite the opposite: he loved gambling, women, partying, his collars extra starched, and he took no crap from no one. Words like profligate or debauched were oftenly used in connection with mentioning his name (sometimes a bit admiratively, I might add).
A duel in which he killed one of the rich dandies of the time and apparently a rival, dramatically changed the course of Law's life; he fled to France where due to his pleasant appearance, wit, and fancy moves, he befriended people in high places ending with the king himself. The rest is history.

Law also has the dubious honor of having caused one of the first manias known to investors: Louisiana territory bubble as embodied in the Mississippi Company, a contemporary and rival to the British South Sea Company but with equally disastrous outcome for its investors. However, in his capacity of CEO, and with no insider deal legislation, Law amassed a fortune, gave meaning for the fist time to the word "millionaire", and as a side matter, made a lot of enemies in the process.

This book makes a thoroughly enjoyable reading. Law was by all accounts a remarkable person and his life and deeds are skillfully presented.
The author did a great job at researching the topic and makes extensive use of the writings of the day documenting the exploits of Mr. Law. If you enjoy adventure, a little bit of economic history, and colorful archaic language you will certainly like this text.

The moral: Law was good with theory but not even he knew that what goes up must eventually come down. Greed took the better of him. Vanity he already possessed in copious amounts, no issue there. Francis Galton enuntiated this about 200 years later in his famous and still valid "reversal to the mean" theory. I guess Law had to learn that one the hard way.

Didier Sornette has written an elegant and penetrating study of the complex elements which contribute to financial booms and their associated busts. Its most important conclusion is that potential crashes are proceeded by statistical “fingerprints”, largely independent of the particular markets involved, which permit their timing to be estimated within narrow limits by mathematical modeling, as demonstrated by numerous examples.

The book attempts two difficult challenges: first to model the potential timings of instabilities conducive to crashes in financial markets, and second to describe both the resulting models and their underlying phenomena intelligibly to the lay reader unfamiliar with much, or even all, of the mathematics involved. I found the author remarkably successful on both counts. The book reads uncommonly well provided one does not get distracted by the inevitable unfamiliarity of some of the mathematical terms, and in support of its main argument presents a wealth of interesting and uncommon information. Importantly, it also reflects a familiarity with the realities of financial markets, typically lacking in academic studies of market phenomena.

This appraisal will not be shared by all readers. If you are a fan of Kramer and Kudlow or prefer information about financial markets in sound bites from CNBC, or if you are looking for specific guidance on how to make money in markets, this book is not written for you. Furthermore, the book contains references to a considerable amount of serious mathematics which is likely to annoy some fraction of its readership. This can be circumvented, as suggested, by simply skimming whatever is unfamiliar. What is missed will have been addressed to a different audience, and not much of relevance will be lost. However, if you are frustrated by (or hostile to) unfamiliar mathematical terms and references, however inessential to the gist of the argument, best give it a pass.

For the rest, this is a deep study of engaging interest which repays more than one reading.

I highly recommend this book, and it may cost you a whole lot of money if you don't read it. EconoPhysics is (quietly) entering the research departments of Wall Street investment firms, so you may do well to take a look for yourself, and this book is a great place to start. It's a fascinating read on market forces and dynamics, and how it all plays out on its way to the extremes (bubbles & crashes). The author reveals findings of a new approach to market analysis and predictions based on studies of real-life, complex systems, which are modelled by a small number of simple rules, wherein a "critical state" can arise, from which chaos (or order!) spontaneously breaks out. It sounds counter-intuitive, but researchers around the world are successfully applying the emerging science of complex systems over a broad range of interests, and unmasking order (predictable patterns) in what was once thought to be random or intractable data. This book takes you down that path and meets up with a little thing called The Market! The reader is given insight into the apparent vagaries of market dynamics from a fresh perspective, walking you through market models and dynamics that account for "herding" behavior around market extremes, wherein pockets of predictability arise. It's all explained without a whole lot of math -- what's not to like? It's the first time I've had fracals explained in simple terms of dimensions, without bifurcation charts, and discussions of "attractors".

To give you a flavor of the book's perspective, consider what happens during a typical day in the market when all of the momentum players, trend spotters, value hounds and growth seekers meet up with each other via buy and sell orders. Typically, the market doesn't move very much, though billions of trades execute. As the author explains, this is possible only through what may be described as complete chaos. That is (simplifying here), for every person who thinks the price is going to fall, and acts on it, there is someone who must be doing the exact opposite. So, the market is stabilized only through complete disagreement (disorder). It's those rare times when agreement (order) rules the day that you get HUGE market swings. The good news is that order is something we can wrap our minds around, identify driving forces, build models, and make predictions -- and this book does all that.

There are not many equations in this book, and you can skip them without losing lock on the book's theme. The concepts and tools covered in this book are at the cutting edge of science and probably new to you, but new analytical insights are valuable, and the author explains them all in layman's terms. I look at this book as a scientific study into Warren Buffet's statement that money managers are "lemmings".

If you love to read works on economics, math and physics and love to assemble models of the world, I cannot recommend this book highly enough. Indeed, if economic models were this much fun when I was an undergraduate, I might have become an economist.

Funny thing though, this was not written by an economist, but by a geophysicist.
It seems physicists and psychologists in particular are writing more interesting economics books these days than economists themselves.

The core focus of the book is a derivation of a market model that includes value investors, momentum investors and the herding effect of individual economic agents acting in a world of partial information. The final model is stunning.

Sornette points out the main problem with predicting bubbles: even if all the signs say "yes," there is still a pretty good chance that the bubble will be self-correcting. Turns out chasing market bubbles is a little like chasing soap bubbles - they may simply disappear at any moment. Thus, the book and the model are of limited use in any type of market timing. Indeed, the model suggests that the market should now be in the tank, and yet it continues to hover on the higher side of its expected range.

As much as I loved the book, there was a slight aftertaste that this was all nothing but a very mathematical and high-minded type of technical analysis. That at base, when all was said and done, this was not all that different from the various "tools" in the chartist's handbook, e.g. MACD, RSI and OBV, etc., etc., etc. The difference may be solely that Sornette knows his statistics and would easily and readily dismiss any model which did not perform significantly different from chance.

Finally, this book will have you trotting out your old high school calculus book. It brought back memories of just how much fun mathematics can be.

All in all - I give it 5 stars.