Any quantity of recent occasions have reinforced the idea that many inside our political class really do not know what these are doing. The world has received so complex but their understand of it’s realities is so naive. Unfortunately, every time they screw up it costs us in wasted taxes dollars usually, lost freedom, or in the Wikileaks scandal, human lives potentially. In an “Alice In Wonderland” world, we could follow the advice of the Queen of Hearts and chop off their political move and heads on, filling their position with someone more skilled ideally.

However, we do not reside in Wonderland. 44.4 billion increase in U.S. 33.3 billion of those increased corporate and business earnings proceeded to go to Wall Street banking institutions and investment houses. Several firms will be the same ones that were at the guts of the financial meltdown using their risky investments and some were saved with taxpayer bailout money. Also irritating is that these same financial firms, flush with cash and income, aren’t making very many loans to businesses and consumers, loans that might finally get the economy moving again. Why are they not making any loans?

But can they be ready for or elsewhere made at least less unpleasant? In this particular great investment publication for our times Posner traces out various resources of what the majority of us perceive as “surpise occasions” and illustrates a practical approach for wanting to mitigate some of the “unpleasant” results they may cause.

This is an absolutely must have publication for 2012 and the uncertain environment we find ourselves. Both for trading and in the areas of our life in which a little “insurance” against dark swans may be appropriate. Just how do highly intelligent bankers and investors get amazing and brought down by financial crises created by their own relationships?

  1. For a supplementary measure of security: Don’t keep large amounts of cash at home
  2. All 401(k)s, IRAs, savings programs, and other hidden assets are included
  3. Strong accounting and financial statement analysis skills
  4. Analytics (big data) and the cloud
  5. Be patient
  6. Killer Investment Banking Resumes

Why can’t formulaic rules and regulations to prevent such crises? How can sophisticated models to be so far off? How can one cope with the unpredictability of collective action’? His exploration of, and answers to, these profound questions come off as being at least honest and thoughtful. However they are also thorough and instructive.

Posner, as a top-notch analyst, is someone whose trading beliefs have inspired a complete great deal of people, including myself, over the full years. And this book is another great resource via him. While not specifically about investing or trading Posner’s book is one that should be on every trader and investors bookshelf for the years ahead.

This great investment reserve truly provides a rounded education in decision making during intervals of elevated doubt and volatility while giving the reader a pleasant story to read. We have to offer up one more book that cannot be totally considered an “investing” or “trading” publication. It is well worth the departure.