The finance sector of Western economies is too big and attracts way too many of the smartest college graduates. Financialization within the last three decades has created a framework that does not have resilience and helps absurd amounts of trading. The finance sector devotes too little focus on the seek out new investment opportunities as well as the stewardship of existing ones, and far too much to secondary-market working in existing property. Regulation has contributed more to the issues compared to the about Other People’s Money: The Real Business of Fund solutions.

Why? What’s fund for? John Kay, with wide useful and academic encounter in the world of financing, understands the procedure of the economic sector much better than most. He believes in good banks and effective asset managers, but good banks and effective asset managers aren’t what he views.

Within a dazzling and revelatory tour from the financial world as it has surfaced in the wreckage of the 2008 crisis, Kay does not flinch in his criticism: we do need a number of the things that Citigroup and Goldman Sachs do, but we do not need Citigroup and Goldman to do them. And several of the items carried out by Citigroup and Goldman do not need to be done whatsoever. The financing sector needs to end up being reminded of its principal purpose: to manage other people’s money for the advantage of businesses and households. It is an aberration when the a number of the finest mathematical and scientific thoughts are tasked with devising algorithms for the only real purpose of exploiting the weakness of various other algorithms for computerized trading in securities. To visit additional down that road leads to wreck.