Download What They Do With Your Money: How the Financial System Fails by Stephen Davis, Jon Lukomnik, David Pitt-Watson PDF

By Stephen Davis, Jon Lukomnik, David Pitt-Watson

A name to reboot capitalism and protect $85 trillion in retirement reductions for his or her owners—not to be used because the monetary industry’s ATM

 Each yr we pay billions in charges to those that run our economic system. the cash comes from our financial institution debts, our pensions, our borrowing, and sometimes we aren’t advised that the money has been taken. those billions might be justified if the finance does an outstanding task, yet as this publication indicates, it too usually fails us. monetary associations usually position their enterprise pursuits first, charging for recommendation that does not anything to enhance functionality, utilizing momentary paying for options which are corrosive to construction long term worth, and occasionally even concealing either their practices and their funding recommendations from investors.
of their prior prizewinning ebook, The New Capitalists, the authors confirmed how usual everyone is operating jointly to call for responsibility from even the main strong organisations. the following they clarify how a tyranny of errant services, naive law, and a misreading of economics mix to impose an enormous stealth tax on our reductions and our economies. extra vital, the trio lay out an schedule for curbing the misalignments that let the monetary to benefit at our fee. With our monetary destiny at stake, this can be a publication that analysts, economists, coverage makers, and an individual with a retirement nest egg can’t have the funds for to ignore.

Show description

Read Online or Download What They Do With Your Money: How the Financial System Fails Us and How to Fix It PDF

Best government & business books

Essays in Transportation Economics and Policy: A Handbook in Honor of John R. Meyer

This survey of transportation fiscal coverage can pay homage to "Techniques of Transportation making plans" by way of John R. Meyer. It covers the fundamental analytic tools utilized in transportation economics and coverage research, specializes in the auto, and covers key city public transportation concerns.

State subsidies in the global economy

If loose alternate is straightforward and precious, why are nationwide governments nonetheless subsidizing their industries with various zeal? utilizing figures from eu Union participants, the quantity highlights the conditional results of globalization, asset specificity, and household associations. faraway from being impotent, democratic states face politically robust pressures to proceed to defend social actors from the vagaries of the worldwide industry.

Private Governance: Creating Order in Economic and Social Life

From the 1st inventory markets of Amsterdam,London, and ny to the billions of digital trade transactions at the present time, privately produced and enforced fiscal laws are extra universal, better, and extra promising than as a rule thought of. In inner most Governance, favourite economist Edward Stringham offers case stories of some of the varieties of deepest enforcement, self-governance, or self-regulation between inner most teams or members that fill a void that executive enforcement can't.

The Politics of Democratization in Hong Kong

An research of the politics of transition in Hong Kong, concentrating on the tug-of-war among China and Britain on democratization, and at the interactions among the more and more politically lively humans of Hong Kong and the democratizing colonial regime. The successes and screw ups of British coverage on account that 1984, and the ignored possibilities to democratize swifter ahead of Governor Patten's appointment in 1992 are tested.

Extra resources for What They Do With Your Money: How the Financial System Fails Us and How to Fix It

Sample text

In Britain, many people buy an annuity that will keep paying no matter how long they live. But annuities are expensive and give low returns. 4 In Amsterdam, though, Sarah has been enrolled into a giant, low-cost, nonprofit fund that will cover her for the rest of her life. 5 percent, so at age sixty-five she has a pension pot equivalent to $642,000. 5 Why the vast disparity? Rather than establish simple, commonsense, low-cost vehicles for collective savings and retirement, such as the Dutch have, financial institutions and policymakers in the United States and United Kingdom have engineered a system that has transformed worker savings into a virtual ATM for the financial industry.

It reduces risk for any one individual by sharing the risk among many people. For example, the bank where I deposit money may lend to some risky ventures, but as long as those ventures don’t all get into trouble at the same time, this lending may be quite profitable. Some of the risky borrowers will pay back their loans, and the interest charged can more than compensate for any losses due to defaults. Similarly, an insurance company can offer life insurance to many people, allowing the premiums from all and the returns from investing those premiums to cover the claims when individuals die.

Payments for order flow that year included about $100 million to Charles Schwab and $75 million to E*Trade. Ultimately, all these costs are a cost to other investors. ”10 High-frequency trading, payment for order flow, and internal pools at hedge funds are all very efficient if looked at from the point of view of the immediate participants, but they provide little for the companies seeking money to invest, and the savers seeking a return who are the ultimate customers. Perversely, the very developments we normally associate with well-functioning markets have added costs without returning much value.

Download PDF sample

Rated 4.83 of 5 – based on 47 votes