{"id":34,"date":"2014-07-08T17:57:16","date_gmt":"2014-07-08T17:57:16","guid":{"rendered":"http:\/\/bhide.net\/wordpress_files\/?page_id=34"},"modified":"2024-08-06T18:16:16","modified_gmt":"2024-08-06T22:16:16","slug":"a-call-for-judgment","status":"publish","type":"page","link":"https:\/\/bhide.net\/wordpress_files\/index.php\/articles\/a-call-for-judgment\/","title":{"rendered":"Call for Judgment"},"content":{"rendered":"

FLAP COPY<\/a> |BUILDING BLOCKS <\/a>|TABLE OF CONTENTS<\/a>| SELECTED PRESS REVIEWS<\/a> | ADVANCE COMMENTS<\/a> |\u00a0SELECTED VIDEO & PODCASTS<\/a><\/strong><\/p>\n

FLAP COPY<\/span><\/strong><\/p>\n

\"a<\/a>Our prosperity requires the enterprise of innumerable individuals and businesses who exercise their imagination and judgment\u2014and 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.<\/p>\n

A Call for Judgment clearly explains how bad theories and mis-regulation have caused a dangerous divergence between the real economy and finance. In simple language Bhid\u00e9 takes apart the so-called advances in modern finance, showing how backward-looking, top-down models were used to mass-produce toxic products.<\/p>\n

Thanks to excessively tight securities laws and loose banking laws, anonymous transactions have displaced relationship-based finance. And Bhid\u00e9 offers, tough simple rules for restoring relationships and case-by-case judgment: limit banks\u2014and all deposit taking institutions\u2014to basic lending and nothing else.<\/p>\n

A Call for Judgment 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.<\/p>\n

Buy A Call for Judgment>><\/a><\/p>\n

 <\/p>\n

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<\/a>
\nBUILDING BLOCKS<\/span><\/strong><\/p>\n

My book synthesizes and extends skeptical writings about modern finance (but\u00a0not\u00a0<\/strong>from the fashionable \u2018behavioral\u2019 point of view) going back to the early 1990s.\u00a0\u00a0In reverse chronological order they include:<\/p>\n

Let Bankers Be Bankers<\/a>, Forbes<\/em>, September 2009<\/p>\n

In Praise of Primitive Finance<\/a>, The Economists’ Voice, <\/em>February 2009<\/p>\n

How Banking Diversification Steered us Wrong<\/a>, BusinessWeek<\/em>, February 9 2009<\/p>\n

Insiders and Outsiders<\/a>, Forbes.com<\/em>, September 2008<\/p>\n

Accident Waiting to Happen<\/a>, September 2008<\/p>\n

Regulation and Financial Innovation 2007<\/a><\/p>\n

\u201cFair Stock Markets:\u00a0 The Hidden Cost,\u201d\u00a0The New York Times<\/em>, January 22, 1995.<\/p>\n

\u201cHigh cost of liquidity,\u201d\u00a0Financial Times<\/em>, December 13, 1994<\/p>\n

“Efficient Markets, Deficient Governance,”\u00a0Harvard Business Review<\/em>, November-December 1994.<\/p>\n

\u201cThe hidden costs of investor protection: lessons from the US,\u201d\u00a0Royal Society of Arts Journal<\/em>, July 1994<\/p>\n

“Return to Judgment,”\u00a0Journal of Portfolio Management<\/em>, Winter 1994.<\/p>\n

“The Hidden Costs of Stock Market Liquidity,”\u00a0Journal of Financial Economics<\/em>, V 34, 1993: pp. 31-51<\/p>\n

“The Causes and Consequences of Hostile Takeovers,”\u00a0Journal of Applied Corporate Finance<\/em>, V 2,\u00a0N\u00a02: pp. 36-59, Summer 1989.<\/p>\n

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<\/a>TABLE OF CONTENTS<\/span><\/strong><\/p>\n

Preface and Introduction<\/p>\n

Part 1.\u00a0<\/strong>Ordering the Innovation Game: Beyond Decentralization and Prices<\/strong><\/p>\n

1. The Decentralization of Judgment<\/p>\n

2. The Halfway House: Coordination through Organizational Authority<\/p>\n

3. Dialogue and Relationships<\/p>\n

4. Reflections in the Financial Mirror<\/p>\n

Part 2: Why it Became So<\/strong><\/p>\n

5. All-Knowing Beings<\/p>\n

6. Judgment-Free Finance<\/p>\n

7. Storming the Derivative Front<\/p>\n

8. Liquid Markets, Deficient Governance<\/p>\n

9. Financiers Unfettered<\/p>\n

10. The Long Slog to Stable Banking<\/p>\n

11. Not There Yet<\/p>\n

12. Finally on Track<\/p>\n

13. Derailed By Deregulation<\/p>\n

Conclusion<\/strong><\/p>\n

14. Restoring Real Finance<\/p>\n

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<\/a>
\n\u00a0SELECTED PRESS REVIEWS<\/span><\/strong><\/p>\n

Barrons
\n<\/a>(Mark Calabria)<\/em><\/p>\n

Daily Beast\u2019s Favorite Books<\/a><\/p>\n

Financial Times<\/a>
\n(John Authers)<\/em><\/p>\n

Inc. Magazine
\n<\/a>(Matt Quinn)<\/em><\/p>\n

The Deal
\n<\/a>(Robert Teitelman)<\/em>[\/one_third]<\/p>\n

Bookforum<\/a>
\n(Reihan Salam)<\/em><\/p>\n

Economist<\/a><\/p>\n

Financial Times<\/a>
\n(Tony Jackson)<\/em><\/p>\n

Instituto Bruno Leoni<\/a>
\n(Alberto Mingardi)<\/em><\/p>\n

Think Progress
\n<\/a>(Matt Yglesias)<\/em>[\/one_third]<\/p>\n

Bslkin Blospot<\/a>
\n(Frank Pasquale<\/em>)<\/p>\n

Economist Intelligence Unit<\/a><\/p>\n

Frankfurter Allgemeine<\/a><\/p>\n

Money Magazine<\/a>
\n(Samantha Lear)<\/em><\/p>\n

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<\/a>
\nADVANCE COMMENTS<\/span><\/strong><\/p>\n

“This great book, Amar Bhid\u00e9’s third in a decade, is an essential and distinct contribution in our hour of need. It first reformulates how modern capitalism does what it does best\u2014innovation. Then, in high gear, it shows us how our capitalism has been brought down by a thousand cuts: the idea that rational investors always know precisely what they\u2019re doing, the perversion of the banking industry, the errors of deregulation and the striking errors in some new regulations. A Call for Judgment is not a cry for some auto da f\u00e9 on Wall Street but rather a brilliant and reasoned plea for a basic revamp of our capitalist institutions so as to regain the dynamism of old.”<\/p>\n

– Edmund Phelps, 2006 Nobel Laureate in Economics<\/em><\/p>\n

“A Call for Judgment is an intellectual firecracker\u2014full of wisdom, common sense, and hard-hitting reform proposals. Few other writers, if any, can match Amar Bhid\u00e9\u2019s deep knowledge of economic theory and historical detail with his first-hand experience in both entrepreneurship and real-world finance. It\u2019s hard to imagine a more useful analysis or guide for what must now be done.”<\/p>\n

– Thomas McCraw, Pulitzer Prize winner in History<\/em><\/p>\n

“A Call for Judgment presents many interesting insights on necessary innovations in the world of today and tomorrow. Amar Bhid\u00e9 prompts also some conclusions for improving the rules and ways for future banking-supervision in the United States. This book is a very positive contribution to a necessary debate.”<\/p>\n

– Hans Tietmeyer, former President Deutsche Bundesbank<\/em><\/p>\n

“Amar Bhid\u00e9\u2019s analysis of the economic crisis that exploded on us a few years ago is extremely informative and thought provoking. He writes from an experience both in business, where he could see what was going on around him, and in academia, where he has had the time to study and reflect on what happened and why. Bhid\u00e9\u2019s discussion of what we need to do to avoid a recurrence is illuminating and persuasive.”<\/p>\n

– Richard Nelson, co-author, An Evolutionary Theory of Economic Change and Honda prize winner<\/em><\/p>\n

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<\/a>SELECTED INTERVIEWS & PODCASTS<\/span><\/strong><\/p>\n

INET interview (Rob Johnson April 2011)<\/a><\/p>\n

RSA lecture podcast<\/a><\/p>\n

Carnegie Council video<\/a><\/p>\n

Financial Times Interview<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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