The tipping point is when he realizes that the market of speculative bets on mortgage bonds is worth 20 times the value of the mortgages themselves. ![]() He listens with growing exasperation as a manager of CDOs, collateralized debt obligations, explains how he has packaged and repackaged mortgage debt into increasingly complicated and exotic securities. There’s a scene in the movie “The Big Short” where a hedge fund manager, played by Steve Carrell, finally begins to grasp the flimsy house of financial cards that would soon collapse and lead to the sub-prime mortgage crisis, and in turn a full-blown banking crisis and global recession. In the following book review, Knowledge at Wharton summarizes Foroohar’s argument and shares examples from the book. And in the wake of a devastating financial crisis fueled by excessive debt and credit, we are seeing a smoke-and-mirrors recovery driven largely by more of the same. The result is an “upside-down” economy where finance, instead of serving as a catalyst, has become a headwind. How to Use Neuroscience to Build Team Chemistry January 23, 2023Īccording to Time magazine journalist Rana Foroohar’s new book Makers and Takers: The Rise of Finance and the Fall of American Business, the ‘financialization’ of banking, and of business in general, has hampered real growth and innovation while exacerbating inequality.Crisis Leadership: Harness the Experience of Others February 14, 2023.Choosing a New Board Leader: Eight Questions March 7, 2023.Speak With Confidence: Four Fixes That Work April 11, 2023.Meet the Authors: Mauro Guillén on How Businesses Succeed in a Global Marketplace June 21, 2021.Meet the Authors: Wharton’s Peter Cappelli on The Future of the Office November 4, 2021.Meet the Authors: Erika James and Lynn Perry Wooten on The Prepared Leader October 3, 2022.The Innovation Tournament Handbook: A Conversation with Christian Terwiesch and Karl Ulrich March 14, 2023.Action, not Words: Creating Gender and Racial Equity at Work July 11, 2022.Navigating Microaggressions at Work November 1, 2022.How National Politics Are Impacting DEI in the Workplace February 7, 2023.Diversity at Work: Why Inclusive Storytelling Matters April 4, 2023.Great Question: Kevin Werbach on Cryptocurrency and Fintech July 21, 2021.Great Question: Dean Erika James on Crisis Management August 16, 2021.Great Question: Wendy De La Rosa on Personal Finance October 15, 2021.Great Question: Witold Henisz on ESG Initiatives November 17, 2021. ![]() Making the Business Case for ESG May 3, 2022.How Companies and Capital Can Be Forces for Good June 21, 2022.Investing in Refugee Entrepreneurs in East Africa August 8, 2022. ![]()
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