A Call for Judgment

• Preface


• Introduction


• Part 1: Ordering the Innovation Game: Beyond Decentralization and Prices


• 1.: The Decentralization of Judgment


• 2.: The Halfway House - Coordination through Organizational Authority


• 3.: Dialogue and Relationships


• 4.: Reflections in the Financial Mirror


• Part 2: Why it Became So


• 5.: All-Knowing Beings


• 6.: Judgment Free Finance


• 7.: Storming the Derivative Front


• 8.: Liquid Markets, Deficient Governance


• 9.: Financiers Unfettered


• 10.: The long slog to stable banking


• 11.: Not there Yet


• 12.: Finally on Track


• 13.: Derailed by Deregulation


• 14.: Restoring Real Finance


• Acknowledgments


• Notes


• References


• Index

Amar Bhidé is Schmidheiny Professor at the Fletcher School of Law and Diplomacy, Tufts University.

a valuable contribution to our understanding of financial markets. Mark Calabria, Barron's I greatly enjoyed this book. It covers a lot of ground and might, therefore, seem daunting. Significantly, though, I found it an increasingly compelling read and concluded that it delivers an impressive and valuable contribution to what ought to remain an absolutely central issue from the perspective of the proper functioning of the plumbing of our economic system and, therefore, our future well-being. Ian Harwood, Chief Economist, Evolution Securities, The Society of Business Economists a very impressive effort, full of fascinating connections and shrewd observations Robert Teitelman, The Deal Events have raised large questions about the academic theories supporting the concept that our heavily 'engineered' financial markets are self-disciplined and efficiently allocate capital. Amar Bhide's skeptical analysis should stimulate basic reconsideration. Paul Volcker, chairman of the Economic Recovery Advisory Board and former chairman of the Federal Reserve This great book, Amar Bhide'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 - innovation. 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're 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 fe 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. Edmund S. Phelps, McVickar Professor of Political Economy and Director of the Center on Capitalism and Society, Columbia University, and 2006 Nobel laureate in Economics A Call for Judgment is an intellectual firecracker - full of wisdom, common sense, and

a valuable contribution to our understanding of financial markets. Mark Calabria, Barron's