耶鲁大学金融市场公开课英文文本1到4

FinancialMarkets:Lecture1TranscriptJanuary14,2008ProfessorRobertShiller:ThisisEconomics252,FinancialMarkets,andI'mBobShiller.Letmebeginbyintroducingtheteachingfellowsforthiscourse;andsoIhavethemuphere.Wehavefiveteachingfellowsatthistimeandthey'refromallover.Iliketoputtheirpicturesupsoyou'llknowwhotheyare.Theteachingfellowsareveryinternationalandthatreflectsmyintentiontomakethisacoursethatisalsoveryinternationalbecausefinanceissomethingaboutthewholeworldtoday,notjusttheUnitedStates.SowecovertheworldverywellwithourT.A.'s.UsmanAliisfromPakistan,Lahore,andhegraduatedfromtheLUMS,LahoreUniversityofManagementSciences.He'saPhDcandidatenowinEconomicsandhe'sdoinghisdoctoraldissertationonstockanalysts'recommendationsandtherelationtoreturnsinthestockmarket.He'salsointerestedinbehavioralfinance,whichistheapplicationofpsychologytofinance.Thesecondteachingassistant-lseehimrightthere,ifyoucouldraiseyourhand-SantoshAnagol,whoisarepresentativeoftheUnitedStates,althoughheseemstohaveconnectionstoIndiaaswell.HeactuallyhasapublicationalreadyintheAmericanEconomicReviewontheReturntoCapitalwithGhana.HedidthisjointlywiththeChairmanoftheEconomicsDepartmenthere,ChrisUdryandhehasspenttimeinIndialookingatthevillageeconomies.Youweregoingtobegivingawaycows,didyoudothat?Student:No,I'mstillworkingoncowsbutwe'renotgivingthemaway.ProfessorRobertShiller:Okay,that'sthelasttimeyou'llhearaboutcowsinthiscourse.Theideawastogivecowsawaytovillagefarmersandtoobservetheoutcome.It'sabigchangeinsomeoftheseverypoorvillagestogetacow.ChristianAwuku-BuduisfromGhana,Accra,buthe,again,wenttocollegeintheUnitedStatesatMorehouseCollege.HeisalsoaPhDcandidateinEconomicsatYaleandhe'sbeendoingresearchonfinancialmarketsindevelopingcountries.YaxinDuanisfromChina.ShegotherundergraduatedegreefromNanjingUniversity.No?YouarefromNanjing,didIgetadetailwrong?Wheredidyougotocollege?Okay,wellI'msorryaboutthat.SheisalsoaPhDcandidateinEconomicsandisdoingresearchonthebehaviorofoptionspricesinaphenomenoncalledthe"optionssmile,"asshe'ssmilingatmerightnow.Sheisalsointerestedinbehavioralfinance,whichisgreattomebecausethat'soneofmyinterests.Sheisshownherestandingprecariouslyonacliff.ItmakesmenervoustolookatitoverlookingMachuPicchuinPeru.Shealsolovesastronomy,whichisincidentallyaninterestofminetoo,butyouwon'thearaboutitagaininthiscourse.Finally,XiaolanZhouisourfifthteachingassistantandshe'salsofromChina,HubeiProvince.ShegraduatedfromWuhanUniversityandisaPhDcandidateinEconomicsatYale.Sheisdoingresearchonbankmergers.Letmesay,I'vebeenteachingthiscoursenowforovertwentyyearsandI'mveryproudofallofmyalumni.Manyofthemareinthefieldoffinance.Infact,IlikesometimeswhenIgive--lgivealotofpublictalks.WhenIgiveatalkonWallStreetorevensomewhereelseintheworldIsometimesaskmyaudience,"Didyoutakemycourse?"It'snotinfrequentthatI'llgetoneoreventwopeopleraisingtheirhandthattheytookEconomics252fromme.ButI'malsoproudofmyalumniinthiscoursewhoarenotintheworldoffinance.Ithinkthiscoursegoesbeyond-lt'snotjustforpeoplewhoareplanningcareersinfinancebecausefinanceisaveryimportanttechnologyandit'sveryimportanttoknowfinancetounderstandwhathappensintherealworld.Justaboutanyhumanendeavorinvolvesfinance.Now,youmightsay,"Icouldbeapoetandwhatdoesthathavetodowithfinance?"Well,itprobablyendsuphavingsomethingtodowithfinancebecauseasapoetyouprobablywanttopublishyourpoetryandyou'regoingtobetalkingtopublishers.Beforeyouknowit,they'regoingtobetalkingabouttheirfinancialsituationandhowyoufitintoit.Ibelieveit'sfundamentalandveryimportant.Ithinkyouwillfindthiscourseasnotavocationalcourse-notprimarilyavocationalcourse-butanintellectualcourseabouthowthingsreallywork.Iseefinanceastheunderpinningofsomuchthathappens.It'sapowerfulforcethatgoesbehindthesceneandIhopewecandrawthatoutinthiscourse.Thereisanothercourse-wehavetwobasiccoursesinfinanceforundergraduatesatYale.TheotheroneisEconomics251,FinancialTheory;thisisFinancialMarkets,thatoneisFinancialTheory.LastyearitwastaughtbyRafaelRomeu,becauseJohn,Geanakoploswhousuallyteachesthecourse,wasonleaveandsowehadtofindsomeoneelse.IassumethatnextfallJohnGeanakoploswillbeteaching251again.Sowhathappened?Whydowehavethesetwocourses?Wellitwassomethinglikeeightyearsagothatwereachedthepresentsituationwithtwofinancecourses.JohnGeanakoplosandIhadameetingandwetriedtodivideupthesubjectmatteroffinanceintotwocourses.WethoughtFinancialTheoryandFinancialMarketswouldbethetwo.ButtheproblemwasthatbothJohnandIareinterestedinboththeoryandapplications.JohnGeanakoplosisactuallyChiefEconomistforalargeinvestmentcalledEllingtonCapitalinGreenwich,Connecticut,whichyou'llseealotinthenews.Ithasbeenverysuccessful.HeisverymuchinterestedintherealworldandIaminterestedinfinancialtheory,sowefindit--wedecided,aftertalkingaboutit,thatwereallycan'tdivideupthesubjectmatteroffinanceintoseparatecoursesontheoryandpractice.Ifyoutriedtodoonealoneitwouldnotwork,sowedecidedtodivideitupimperfectlyandtheremaybesomerepetitionbetweenourtwocourses.Bothofthemareself-containedcourses,soyoucouldtakeeither251or252,oryoucouldtakeboth.Ithinkmaybethebestoptionistotakebothifyou'rereallyinterestedinthesubjectmatter.Itistruethoughthathiscourseismoretunedintotheoreticaldetailthanmine.Johnisamathematicaleconomistandwebothlovemathematics,butmaybeJohnisgoingtodomoreofitthanIam.Thiscourseactuallywillnotuseaheavyamountofmathematics.ItrytokeepitsothatpeoplewhoarenotcomfortablewithalotofmathcantakethiscourseandIwantedtoemphasizethatthisis-l'vesaidthatit's-lthinkthiscourseisvocationalpreparationinasense.Ipridemyselfonthefactthatpeoplewhohavetakenthiscoursefinditusefulintheirsubsequentlives,butontheotherhand,Ithinkthatit'sreallyinteresting.AtleastIfinditreallyinterestingandsoIhopethatyouwilltoo.NowIdon'tknow,Imaybedifferentthanotherpeople,butIthinkorganicchemistryisreallyinteresting.Howmanyofyouhavethatfeeling?CanIgetashowofhands,whoisinterestedinorganicchemistry?I'mnotgettingalotofhandsraised.Unfortunately,I'venevertakenacourseinit,butI'vestartedreadingitlatelyoutofjustmybroadintellectualinterest.Thatisacoursethathasabadreputation,doesn'tit?BecausepeoplesayI'vegottotakethatifIwanttobepre-med.But,youknow,tomethere'salotofdetailinorganicchemistry.Tome,whenyoureadthedetailyou'regettingintosomethingdeepandimportantaboutthewayeverythingworksandsoIstarttofinditinteresting.SoIdon'tknowhowpeoplefeelabouttaking-maybeI'mturningyouoffbysayingthis-There'sgoingtobealotofdetailinthiscourse.MaybeImadeabigmistakebylikeningittoanorganicchemistrycourse-1don'tmeantoturnyouoff.Theideainthiscourseisthatbybeingafinancialmarketscourse,youhavetoknowhowtheworldworks.We'regoingtobethinkingaboutthatinconnectionwithFinancialTheory,butwehavetogetintothedetails;sowearegoingtobelearningaboutfacts.Letmestartbytalkingaboutthetextbook.SotheprincipaltextbookisFrankFabozzi,theotherauthorsareModigliani,JonesandFerri,FoundationsofFinancialMarketsandInstitutions.Thistextbookisverydetailedanditmaybe-l'vehadsomereactionbystudents-morethanyouwantedtoknow.Iactuallyhadagreatexperiencereadingit.Actually,itwasanearlieredition,whenIfirstassignedthisbookintheyear2000,Itookitwithmeonvacation.IwasgoingtotheBahamaswithmyfamilyandwithJeremySiegel'sfamily-we'llcomebacktoJeremySiegelinaminute.Isatdownbythepoolwiththisbook.OtherpeoplewerereadingnovelsandIdon'tknowwhatelse,butIwasreadingFabozzi.Ihadsuchagreattimewithit,soI'mtellingyoumyexperience.Maybeitwasbecauseitwasfillingingapsinmyknowledge-thingsI'vealwayswantedtoknowandwasalwayscuriousabout.That'spartlywhatyouhavetodevelopwhenyougetinterestedinafield:somesenseofcuriosityaboutallthedetails.SoIreadthewholebook,650pages,maybeIkindofreadfastbecauseIknewalotofit.Itmighttakeyoualittlelongertogetthroughit,butIwantedyoutohavethesameexperience.I'vebeenassigningthisbook,nowit'sinanothereditionand-Fabozziisworkingonafourthornextedition,Iforgetwhatnumber.I'vebeenassigning-l'vegottensomecomplaintsfromstudentsthatthisbookistoughgoingbecausethere'ssomuchinformationinit.Iusedtotellpeople,"I'massigningthewholebookandyouhavetoknoweverythinginthebook."That'salittleambitious.IfinallybackeddownbecauseImetamanonWallStreet,averyprominentWallStreetperson,andhesaid,"Youknow,mysonstartedtotakeyourcourse."Isaid,"Whatdoyoumeanstartedthecourse?"Hesaid,"Well,hedroppedoutwhenhesawthisbookandtherequirements."Ididn'tlikethat.Idon'twantstudentstodropout.SowhatIdecidedisthatyouneedtoknowthewholebookinthesensethatyouneedtoknowallofthekeytermsandkeypoints.Nowifyoulookatthestructureofthisbook,ithassectionsthatsayKeyPointsandKeyTerms.Anythingthat'smentionedthereisfairgameformeinanexamandthat'sthewayI'vedoneit.Therearekeypointsandkeyterms.Also,anythinginmylectureisofcoursefairgamefortheexam.LetmealsoaddthatIhaveareadinglistthathasclickablethingsonitandalsothingsthatareonreserveinthelibrary.Anythingthat'sclickableisrequiredreading.Idon'texpectyougotothelibrary,however,becauseIthinkthatwe'removingintoanagewhereyoutendtowanttobeonline,right?Sothelibrarybooksarealloptionalbackground.Fabozzi,afacultymemberhereatYale,hasofferedtogiveme-wehaveatleastonechapterfromtheneweditionthathasn'tcomeoutyet.I'mgoingtoputthatonreserveinthelibrary;butagain,Ithinkthattheeditionthatyouhaveisreasonablyuptodateandsothat'sallthatI'mexpectingyoutoread.Theotherauthor,FrancoModigliani-inthebook,thesecondauthor--wasmyteacheratMIT.Hediedin2003.HeisalsoaNobelPrizewinnerandIthinkhasaremarkableintellect.Sothisbook,Fabozzi,etal.-Fabozzi,Modigliani,JonesandFerri-isaverysolidbookaboutfinancialmarkets.ThesecondbookthatI'massigningisJeremySiegel,StocksfortheLongRun.Thisisanoldfriendofmine.Imethimingraduateschool.Funnystory,ImethimbecauseatMITtheysignedusallupforchestx-raysalphabetically-that'sthewayMITdoesthings,anorderlyway.ShillerandSiegelarenexttoeachotherinthealphabet,soIwasstandinginlinewithhimforanx-rayandwastalkingwithhimandI'veknownhimeversince.Afunnycoincidenceisthatsinceournamesarecloseinthealphabet--youoftenfindourbooksrighttogetherinbookstoresbecauseShillerandSiegel-ifthey'reshelvingalphabetically--wouldenduptogether.HewroteabookcalledStocksfortheLongRun,startingin1993.Itjustcameoutwiththefourtheditionandthatbookwasabestseller.Ithinkitsoldoverahalfmillioncopies.I'mnotsurewhereitisnowbutithasdoneverywell.It'sbeenaperennialclassic.Itemphasizesthelongrunperformanceofthestockmarket,butit'sreallyageneraltreatiseoffinancialmarkets.Igetaverygoodreactionfromstudentsaboutthisbook.Thisoneisveryreadable.It'snotasintenseasFabozzi,etal.JeremySiegelholdstheuniquedistinction-BusinessWeekdidapollaskingMBA'sabouttheirfavoriteprofessor.Thiswasabouttenyearsago.Theyrankedbusinessschoolprofessorsaccordingtotheirpopularity.HecameoutnumberoneintheUnitedStatesasbusinessschoolprofessor.Ithinkyou'lllikethisbook.ThenextbookismyownandcalledIrrationalExuberance.Thisisthelastbook-That'saphrasethatwascoinedbyAllenGreenspanin1996anditreferstothestockmarketboomofthe2000s-ofthe1990sandtheboomandthebust-wellIthinkit'srelatedtothebustthatcameoutlater,after2000.Iwrotethisbookin2000rightatthepeakof-fortunatelyrightatthepeakofthestockmarket.ButwhatI'massigningtoyouisthesecondedition,whichcameoutin2005,prettymuchatthepeakofthehousingmarket.We'regoingtotalkaboutboththehousingmarketandthestockmarketinthesedifferentbooks.ThesebooksareallonsaleatLabyrinthBooks,whichisanindependentbookstorehereinNewHaven.Iputittherebecause,well,IthinkthemajorchainbookstoresfulfillanimportantfunctionbutIalsoliketosupportindependentbookstores.Idon'tknowifyouknowthestory,butLabyrinthBooksisindependent,it'snotachain,andindependentbookstoresaretrying-struggling-tosurvive.Thisisfinance.Inthebookbusiness,there'ssomethingdifficultaboutmaintaininganindependentoperation.LabyrinthwasatColumbiaUniversityandYale.ForsomereasontheyshutdowntheirColumbiabookstore,butthey'veopenedupnowinPrinceton.TherewasthisfamousbookstoreinPrincetononNassauStreetcalledMicawber's,whichisawonderfulbookstore.I'vebeeninthereanumberoftimes.Buttheyjustwentoutofbusiness.Labyrinthhasmovedintotaketheirplace.Anyway,that'swhereallthebooksareandtheyareavailablenow.We'regoingtohavetheselecturesonMondaysandWednesdays.We'regoingtohaveT.A.sectionsinthesecondpartoftheweek.We'regoingtoaskyoutolookatyourschedulesometimebeforeournextlectureandthinkaboutwhenyoucancometoateachingassistantsection.TheywillbeWednesday,Thursday,andFridayandwehavesixproblemsets.ThesixproblemsetsareduegenerallyonMondaysandwe'llgoovertheproblemsetsintheteachingsections,severaldaysafteryouturnthemin.ThisisoneofthebiggestclassesatYale,butIthinkwe'vegotitsoitwillbeagoodandsatisfyingexperienceforyou.Wehaveveryqualified--l'mveryimpressedwithourteachingassistants.TheimportantthingisforyoutostaywiththemandgettoknowthemandIurgeyoutoattendtheT.A.sections.Thecourseisgoingtobegraded.Wehavetwomid-termsandonefinal.Theinclassmid-terms-thegradeswillberoughly10%problemsets,20%firstmid-term,30%secondmid-term,40%final.ButwewillalsousejudgmentandI'mgoingtoappealtotheT.A.'stohelpmeonjudgingthegrading.Also,Iasktheteachingassistantstogivemelittlecapsuledescriptionsofyousothatifintenyears,or20yearsfromnow,Igetacallfromareporteraskingaboutthisillustriouspersonwhowasoncemystudent,Icanhavesomethingtoprodmymemory.That'swhyIhopeyou'llstaywith-you'lleachfindateachingassistantandwillstaywiththatperson.Iwanttosaysomethingaboutaparticularinterestofminebecauseitispartofthiscourse,althoughnottheentirecourse.Behavioralfinancereferstoarevolutioninfinancethathasoccurredoverthelasttenor20yearsandthatisincorporated-Behavioralfinanceisthetheoryoffinancemixedinwiththetheoriesofothersocialsciences,notablypsychology,sociology,politicalscience,andanthropology.Ithinkit'sthemostimportantrevolutioninfinanceofthelastcoupledecades.MaybeI'mbiasedbecauseI'vebeenverymuchinvolvedinit.I'vebeenorganizingworkshopsinbehavioralfinanceattheNationalBureauforEconomicResearchsince1991withDickThalerattheUniversityofChicago.Wethinkthatwe'reavant-gardeofamajorrevolution.Theunityofthesocialsciencesis,Ithink,veryimportant.It'samistaketotrytoconsiderfinanceinisolation.Thereisawholearrayofotherinformationrelatedtofinance.Thiswillbeathemeofmycourseandalsoathemeofthisbook,IrrationalExuberance.That'swhatexuberancerefersto-it'sapsychologicalterm.Sothat'sanimportantelementofthiscourse.AnotherthingthatIwillbetalkingaboutislessimportanttothiscoursebutyouhaveheardofthis:thesubprimecrisis.ThisisthebigfinancialeventthatishittingtheUnitedStatesandtheentireworldrightnow.I'mactuallywritinganotherbookaboutthis.It'snotdoneintimeforyoutoreadbutIthinkIwillhaveitdoneatsometimeduringthissemester.Whatdoesitmean?"Subprime"referstothemortgagesthatweremademostlyoverthelasttenyearsorsotosubprimeborrowers.A"subprimeborrower"issomebodywhohasapoorcredithistoryorsomeotherindicationthatwouldsuggestthattheymightnotbeabletorepaythemortgage-theymightdefault.Theindustry,subprimelending,hasgrowndramaticallyoverthelasttenyearsand,asyouprobablyknow,it'sinbigtroublenow.What'shappeningisthehousingmarketisdropping,homepricesarefalling,peoplearedefaultinginrecordnumbers,andthereareforeclosures.Whathappensifyoudon'tpayyourmortgage?Ifyoubuyahouseandyoudon'tpaythemortgage,thecontractsaysyoulosethehouse--you'reout-you'vegottopayoritgoesbacktothemortgageoriginator.Thiscrisisisveryinterestingtomebecauseit'shadsomanyramificationsthroughoutthefinancialworld.It'sexposingdefectsinmanyofourbiggestfinancialinstitutionsandeverydayweseemorenewsaboutfailures,hugelosses,resignations,orfiringsoftopfinancepeople.Soit'saveryinterestingtimeinfinance.Thesethingshappenfromtimetotime,buttheyhappenwithenoughregularitythatthere'ssomethingwereallywanttounderstandasasystematicphenomenon.Sothat'sanotherthingthatIwillbetalkingabout.Letmemakeanotherpointabouttechnology.Finance,Ibelieve,isatechnologyandthatmeansitisawayofdoingthings.Ithasalotofdetail.Afinancialinstrumentislikeanengineeringdevice.HereI'mtyingtotheengineering--lsanyoneherefromengineering?Acoupleofyou,wellthiscouldbe-lnfact,someengineeringschoolsoffercoursesinfinance,didyouknowthat?Engineersfinditcongenialbecausetheyhaveawayofthinkingconstructivelyabouttheworldthatiskindofparalleltofinance.Wehavetheories-mathematicaltheories-thatleadustodevisefinancialstructures,whicharecomplicateddevicesjustlikeenginesornuclearreactors.Theyhavealotofcomponentsandtheyhavetoworkright.Whenpeoplefirstdevisesomenewfinancialinstrumentittypicallyhastrouble.Likewhentheydevisedthefirstenginesorthefirstnuclearreactors,itdidn'tworksowellatfirstandthenfromtheexperienceofmanypeopleworkingonit,overmanyyears,abodyofknowledgeemergesandthat'swhatwecalltechnology.SotechnologyisapowerfulforceinoursocietyandIrespectpowerofthiskind.That'swhyIliketofollowitup.Buttechnologyisalsodangerous.Nuclearpower,forexample,maybeoursalvationwhenwerunoutofoil-orvirtuallyrunoutofoil-itseemstobecomingupoverthenextseveraldecades-we'regoingtohavetodothat,we'regoingtoneednuclearpower.Butit'salsodangerous,asyouknow.Thesamethingistrueaboutfinance.Ithinkthat,inasense,thesubprimecrisisthatwehaveisanexampleofthedangersofnewtechnology.Wehavebeenseeingfinancialtechnologyadvanceinrecentyearsandthisadvancementoftechnologyhasbroughtussomeproblems.Somepeoplewanttogoback,somepeoplethinkthere'salotofangeraboutthesubprimepricesandthere'ssomeangerexpressedagainstthefinancialcommunity.Ithinkthatweshouldbeverycarefulnottoletthatdeflectusfromtherecognitionthatthisisimportanttechnologyandthatit'snotthetechnologythat'satfault;wehavetogetitrightandthenitwillbepowerful.I'vehadsomeexperiencegivingtalksinlessdevelopedcountries.I'mnotadevelopmenteconomist.Nowadevelopmenteconomist-that'sSantosh'sfield-Developmenteconomicsisaveryimportantfieldineconomicsthatishelpinglessdevelopedcountriesemerge.I'mveryproudtosaythatYalehasastrongdepartmentattheGrowthCenterondevelopmenteconomics.I'mnotadevelopmenteconomist.Nonetheless,whenI'vespokeninlessdevelopedcountries,Ifindthatthey'rereallyinterestedinfinance.Ithinkthat'sbecausethere'sagrowingrecognitionthatthat'swhatyouneedtoknowandthatthecountriesthatareemergingsuccessfullyarethosethathavewelldevelopedfinancialinstitutionsthatareadoptingthetechnology.Theyhavetoadaptittotheirownsituation,butinmanywaysthey'recopyingtechnology.There'snothingbadaboutcopyingtechnology,that'swhateverybodydoes.Whensomebodyinventedtheautomobile,beforeyouknewiteveryonewasdrivingautomobilesandtheyalllookedprettymuchthesame.Whensomeoneinventedtheairplane,beforeyouknewiteverycountryhadanairplanebecausetherewasabestpractice,therewasabesttechnologyanditwasnotuniquetoanyonecountry.Sothat'swhyIviewthiscourseasfundamentallyabouttechnology.Iwanttosaysomethingaboutmoralityandaboutmixedfeelingsthatpeoplehaveaboutfinance.Iknowthatundergraduates-ldon'tknowhowyoufeelaboutfinance.Somepeoplehaveareaction-lfyousayyou'retakingacourseinfinance,theythinkthatmaybeyou'resellingoutormaybeyouvaluemoneytoomuchandthatyoushouldreallybeinsomeotherfield.Thisisalongstandingconflictinourthinking.Thereissomecontemptforfinance,Ibelieve,becauseitmakessomuchmoneyformanypeople.Manyofourstudentsgointofinance.Yaleisverystronginprovidingpeopletothefinancialcommunityand,Ihavetosay,theydoverywell.Myfirstadviceisifyouwanttomakemoney,whichIdon'tparticularlyadvise,butifyoudoit'snotabadideatogointofinance.Justas,youknow,youcanmakealotofmoneywithorganicchemistrytoo.Ithinkthatwhatyouhavetodoasayoungpersonisdevelopyourhumancapitalandthatmeansknowinghowtodothings.ButthereishostilitytowardfinancethatIthinkisveryfundamentaltoalotofourthinking.Iwantedtosaysomethingaboutthat.Partofitisthatsomepeopleinfinancegetsorich.Ifyoulookatthelistoftherichestpeople,they'reallconnectedtofinance,right?Imeantheyunderstandit.Maybethey'renot—Maybethey'reinpublishingorsomeotherfieldbuttheyunderstandfinanceandalotofthemaredirectlyinfinance.Sowhatdowemakeofthat?Wellpartofitisthatwegetvery-Wegetasortofjealousyofthesepeoplebecausewhyshouldsomeonehavebillionsofdollars?Didtheyreallydeservethat?Somepeoplewhomakealotofmoneygetself-important-whomakealotofmoney-andtheyendupnotmakingalotoffriendsintheprocess.TheYaleUniversityPressispublishinganewbookbySteveFraseraboutWallStreet.Hegivesexamplesinthisbookabouthostilitytoward-itgoeswayback-lnFraser'sbookhegivesanexampleof-l'veneverheardofthispersonbefore,butWilliamDurr,whowasafinancierincolonialAmericainthe1700s,madealotofmoneyandhelpedfinancetheRevolutionaryWarintheUnitedStates.Heendedupbeingchaseddownthestreetbyanangrymob.Peoplehatedhimandwhywasthat?Wellitwaspartlybecausehegotsorichandhestartedwantingtoshowoff.Hehadwhattheycalled"liveryservants,"notjustservants,butservantswhowerewearinglivery,likeamilitaryuniform.Itlookedlikearistocracycomingbackintheformofrichfinancialsuccessesandwedon'tlikethat.Thereisafeelingofhostilitytowardthat.Therehasbeenalongdiscussionaboutwhatpeopleoweeachotherandhowokayitistotrytomakemoney.Idon'tknowifyouremember-lhavetostarterasinghere-oneofthemostwellknownYaleprofessorsofthenineteenthcenturywasWilliamGrahamSumner,whowroteafamouspiececalled,WhatSocialClassesOwetoEachOther.SumnergraduatedfromYalein1863.HewasamemberofSkullandBones-haveyouheardofthat?Youknowthatgroup?HespenthisentirecareeratYaleandhewrote-HewasHeadofoursocialsciencesdepartment,beforewehadseparatedepartmentsofeconomicsandpsychology,etc.Hewasaveryprominentexponentoftheideathatpeopleshouldgooutfortheirowninterest.Onesocialclassdoesnotoweanythingtoanotherandweshouldnotfeelguiltyaboutpursuingfinancialinterests.Thatledtoanattitudeamongagoodsegmentofoursocietythatit'sokaytogooutandmakemoneybecausemakingmoneymeansdoingproductivethingsfortheeconomyandultimatelyit'sabenefittosociety.Butwehavesomediscomfortwiththat.Anotherbook,whichIhaven'tputonreserveyetbutI'mgoingto,isbyPeterUnger,whoisaphilosopher.It'saremarkablebookcalledLivingHighandLettingDiethatreferstoamorebroadphilosophicalissuethatwehave.Itisthatmostofusarereallymakingmoneyforourselves-that'swhatwedowithourlives-andwhetherornotthatismoral.It'snotjustrichpeoplewhodothat-therestofusdoitalso-andinPeterUnger'sbookhe-Onthefirstpage,hehasanaddressandit'sanaddressforUNICEF,whichistheUnitedNationsChildren'sFund,andhestartsouthisbookwiththataddresswhereyoucouldsendmoneyrightaway.Ithoughtitwasveryimpressivethatheputthatonpageoneofthebookbecauseitputsthereaderinamoraldilemma.Hepointsoutthatit'sestimatedthatforevery$3yousendtoUNICEF,youcansavealife.That'sbecausetherearepeopleinthisworldwhoarenotgettingmedicalcare.Therearepeoplewhoaredyingofdiseasesforwhichthereareknowncuresbecausetheydon'thavethebestmedicine,whichareoftennotevenexpensivebutthey'relivinginsuchpoverty.Sohesays,whydon'tyoustop