Dangerous Economies

Before the American Revolution, the people who lived in British North America were not just colonists; they were also imperial subjects. To think of eighteenth-century New Yorkers as Britons rather than incipient Americans allows us fresh investigations into their world. How was the British Empire experienced by those who lived at its margins? How did the mundane affairs of ordinary New Yorkers affect the culture at the center of an enormous commercial empire? Dangerous Economies is a history of New York culture and commerce in the first two thirds of the eighteenth century, when Britain was just beginning to catch up with its imperial rivals, France and Spain. In that sparsely populated city on the fringe of an empire, enslaved Africans rubbed elbows with white indentured servants while the elite strove to maintain ties with European genteel culture. The transience of the city's people, goods, and fortunes created a notably fluid society in which establishing one's own status or verifying another's was a challenge. New York's shifting imperial identity created new avenues for success but also made success harder to define and demonstrate socially. Such a mobile urban milieu was the ideal breeding ground for crime and conspiracy, which became all too evident in 1741, when thirty slaves were executed and more than seventy other people were deported after being found guilty—on dubious evidence—of plotting a revolt. This sort of violent outburst was the unforeseen but unsurprising result of the seething culture that existed at the margins of the British Empire.

This history of New York culture and commerce in the first two thirds of the eighteenth century tells how the volatile forces of imperial politics and commerce created a fluid society in which establishing one's own status or verifying another's was a challenge.

Before the American Revolution, the people who lived in British North America were not just colonists; they were also imperial subjects. To think of eighteenth-century New Yorkers as Britons rather than incipient Americans allows us fresh investigations into their world. How was the British Empire experienced by those who lived at its margins? How did the mundane affairs of ordinary New Yorkers affect the culture at the center of an enormous commercial empire? Dangerous Economies is a history of New York culture and commerce in the first two thirds of the eighteenth century, when Britain was just beginning to catch up with its imperial rivals, France and Spain. In that sparsely populated city on the fringe of an empire, enslaved Africans rubbed elbows with white indentured servants while the elite strove to maintain ties with European genteel culture. The transience of the city's people, goods, and fortunes created a notably fluid society in which establishing one's own status or verifying another's was a challenge. New York's shifting imperial identity created new avenues for success but also made success harder to define and demonstrate socially. Such a mobile urban milieu was the ideal breeding ground for crime and conspiracy, which became all too evident in 1741, when thirty slaves were executed and more than seventy other people were deported after being found guilty—on dubious evidence—of plotting a revolt. This sort of violent outburst was the unforeseen but unsurprising result of the seething culture that existed at the margins of the British Empire.

The 2017 Home Capital saga represents the shortcomings of a financial system challenged by distinct, siloed regulatory frameworks that fail to communicate with each other. Home Capital is a publicly traded company that acts as a lender through the Home Trust Company, most often providing mortgages to clients rejected by traditional banks. Home Capital’s 2017 announcement that it required $2 billion to sustain a $600-million loss shook customer confidence, and fueled by allegations of corruption, the company suffered a rapid decline in stock price. The Home Capital crisis is the most recent pre-pandemic example of systemic risk in the financial sector in Canada and highlights the invaluable opportunity we have to avoid repeating past mistakes in the nearing post-pandemic economic reality. Using the 2017 Home Capital saga as a starting point, Dangerous Opportunities sheds light on the compartmentalization of regulators and its greater ramifications on board independence and corporate governance, taxation in the competitive housing sector, and the success of non-bank financial institutions in various jurisdictions. A hybrid of law and business, Dangerous Opportunities is a must-read for those interested in the underbelly of financial institutions and is an inspired read in the aftermath of the recent housing crisis, which saw many aspiring homeowners seek dangerous opportunities outside of the traditional banking system.

A corporate guide to crisis management in volatile financial markets Current financial crises in Argentina, Japan, and Turkey are being played out on the front pages of newspapers, and these are just the most recent financial crises that have rolled across the globe in the last decade and whose far-reaching impact hurts business around the world. Dangerous Markets: Managing in Financial Crises recognizes that no global corporation or financial institution can afford to ignore the potential of a financial storm and will help top management and financial professionals navigate through this often disastrous maze. While many books discuss financial crises and their ramifications, none has presented an action plan for managing these storms—until now. Dangerous Markets: Managing in Financial Crises presents a method that allows executives and financial professionals to recognize the warning signs of a financial crisis and act appropriately before the situation spirals out of control. Based on years of research and practice in cleaning up the mess, McKinsey consultants Barton, Newell, and Wilson reveal the warning signs of potential financial catastrophes and provide unique principles that can be followed to shape and manage a strategy for survival.

Selected as a Financial Times Best Book of 2013 Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts--austerity--to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer. That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn't work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we austerity for what it is, and what it costs us.

David Smick keeps a low profile, but experts consider him one of the most insightful financial market strategists in the world. For more than two decades, he has conferred with central bankers (such as Alan Greenspan and Ben Bernanke) and advised top Wall Street executives and investors, from George Soros to Michael Steinhardt to Stan Druckenmiller. Political leaders (from Bill Bradley to Jack Kemp) have regularly sought his policy advice. The World Is Curved picks up where Thomas Friedman’s The World Is Flat left off, taking readers on an insider’s tour through the private offices of central bankers, finance ministers, even prime ministers. Smick reveals how today’s risky environment came to be—and why the mortgage mess is a symptom of potentially far more devastating trouble. He wrestles with the two questions on everyone’s mind: How bad could things really get in today’s volatile economy? And what can we do about it? Drawing on riveting anecdotes in language anyone can understand, Smick explains: Why the churning cauldron we call China (the next great bubble to burst) represents a powerful threat to everyone’s pocketbook How Japanese housewives have taken control of their nation’s savings, and why it matters to us How greed-driven bankers and investment bankers have put everyone’s pensions and 401(k)s at risk Why today’s “incredible shrinking central banks” may not be able to save us when the next crisis hits Why the big-money Russian, Chinese, Saudi, and Dubai sovereign wealth funds represent a tectonic shift in global financial power, away from the United States, Europe, and Japan Why the world desperately needs a “big think” financial doctrine to guide today’s dangerous ocean of money The World Is Curved is the rare book that speaks simultaneously to the Wall Street, Washington, and London elite, yet its apt storytelling shows Main Street readers how to survive in these turbulent times.