As the banking crisis and its effects on the world economy have
made plain, the stock market is of colossal importance to our
livelihoods. In "Framing Finance," Alex Preda looks at the history
of the market to figure out how we arrived at a point where
investing is not only commonplace, but critical, as market
fluctuations threaten our plans to send our children to college or
retire comfortably.
As Preda discovers through extensive research, the public was
once much more skeptical. For investing to become accepted, a
deep-seated prejudice against speculation had to be overcome, and
Preda reveals that over the course of the eighteenth and nineteenth
centuries groups associated with stock exchanges in New York,
London, and Paris managed to redefine finance as a scientific
pursuit grounded in observational technology. But Preda also notes
that as the financial data in which they trafficked became ever
more difficult to understand, charismatic speculators emerged whose
manipulations of the market undermined the benefits of widespread
investment. And so, "Framing Finance" ends with an eye on the
future, proposing a system of public financial education to counter
the irrational elements that still animate the appeal of
finance.
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