• Speculation: A History of the Fine Line between Gambling and Investing by Stuart Banner

REVIEW

A mostly chronological history of a glace banking abstraction accumulated with commodity affiliated to a lengthy law analysis article.

Banner (Law/UCLA; The Baseball Trust: A History of Baseball's Antitrust Exemption, 2013, etc.) exhibits his allure with “a bind that has afflicted the acknowledged arrangement for a continued time”—the abstraction of speculation, which “lies about amid investment and gambling,” possessing “attributes of both.” From the aperture of the book, the columnist cites accepted sense, accepted business wisdom, Congressional legislation, and cloister rulings in an accomplishment to analyze “the acceptable risky transactions from the bad.” Although the anecdotal involves sometimes-dense financial and acknowledged concepts, Banner negotiates the abracadabra with bright book and compelling anecdotes. He opens with a altercation dating to the American Civil War, back the affairs ability of the cardboard bill issued by the Union began to slip, conceivably because of the unpatriotic, acquisitive speculators abhorrent by President Abraham Lincoln, Secretary of the Treasury Salmon Chase, and other officials. As banal markets developed more complicated products, debates about the abuttals amid acceptable belief and adverse gambling increasingly focused on the New York Banal Exchange and the Chicago Board of Trade. The bazaar blast of 1929, which precipitated the Great Depression, led to across-the-board legislation but could not adapt animal behavior. As a result, the line amid absolute and chancy advance charcoal blurred. Unfortunately, this blurring gives Banner's argument an unfortunate on-the-one-hand/on-the-other-hand cast. The columnist brings the history up to date by discussing the roles of banking belief in the 2008 financial crisis; he proposes that although the all-inclusive akin of belief did not cause the meltdown, it did accord to its size.

A somewhat narrowly focused book that will not acceptable address to a ample swath of readers but will repay those who advance their absorbed attention.

EDITORIAL REVIEW

What is the difference between gambling and speculation? This difficult question has posed a legal problem throughout American history. Many have argued that periodic failures by regulators to differentiate between the two have been the proximate causes of catastrophic economic downturns, including the Great Depression and the 2008 global financial crisis.

In Speculation, Stuart Banner provides a sweeping history of how the fine lines separating investment, speculation, and outright gambling have shaped America from the 1790s to the present. Advocates for risky investments have long argued that risk-taking is what defines America. On the other side, critics counter that unregulated speculation results in bubbles that draw in the most ill-informed investors, creating financial chaos. The debate has been a perennial feature of American history. The Panic of 1837, the speculative boom of the roaring twenties, and the real estate bubble of the early 2000s are all emblematic of the difficulty in differentiating sober from reckless speculation. Some, chastened by the most recent crash, argue that we need to prohibit certain risky transactions, but others respond by citing the benefits of loosely governed markets and the dangers of over-regulation. Economic crises have generated deep ambivalence, yet Americans' faith in investment and the stock market has always rebounded quickly after even the most savage downturns.

Speculation explores a suite of themes that sit at the heart of American history-the ability of courts and regulators to protect ordinary Americans from the ravages of capitalism; the periodic fallibility of the American economy; and the moral conundrum inherent in profiting from speculation while condemning speculators. Banner's engaging and accessible history is invaluable not only for understanding the fault lines beneath the American economy today, but American identity itself.

Speculation: A History of the Fine Line between Gambling and Investing

  • BookSpeculation: A History of the Fine Line between Gambling and Investing
  • Author:Stuart Banner
  • ISBN:0190623047
  • ISBN-13:9780190623043
  • Binding:Paperback
  • Publishing Date:2017-01-02
  • Publisher:Oxford University Press
  • Language:English
  • Number Of pages:352