Man vs. Markets: Economics Explained (Plain and Simple) – An Insightful, Witty Journey Through Financial Markets for Investors

by Paddy Hirsch

Man Vs. Markets by Paddy Hirsch of NPR’s “Marketplace” is economics explained, pure and simple, for the layperson who wouldn’t know a “bond” from an “option,” and who believes that a “future” is when we’ll all have flying cars. Here is an illuminating, insightful, and wonderfully witty journey of discovery through the often confusing financial markets, offering clear, relatable explanations and definitions of the system’s various instruments, yet less simplistically than the popular ...for Dummies series. Man Vs. Markets is a must-read handbook for everyday investors, serious students of finance and economics, and everyone who wants to understand what they’re reading when they open their newspapers to the business section.

Genres: Economics, Nonfiction, Finance, Business

268 pages, Kindle Edition

First published August 28, 2012

About the author

Paddy Hirsch is an author and Murrow award-winning journalist. His first novel is The Devil's Half Mile, an historical thriller with a financial twist, set in New York in 1799.

He is the author of Man vs Markets; Economics Explained, Plain and Simple. Publisher's Weekly called the book " “A straightforward, accessible, and often hilarious overview of our financial and economic systems, products, and concepts."

He works as a supervising editor at NPR's planet Money. He is also the creator and host of Marketplace Whiteboard, an award-winning video explainer of financial and economic terms.

Reviews

[Efi · Rating 5 out of 5]

This is a five star book despite the extremely low rating that I would assign to the video clips that advertise it. This is not a book on how not to lose your shirt in the market. This is a book that should become a classic on the shelf labeled The Art of explanation. It will make you look great during happy hour discussions. In the 90s you could get by, only with stock talk and tips, and M&A stories. But the subprime crisis dropped new jargon in the marketplace. Paddy’s book is like a diamond from the sky dropping on the patio of a Californian yuppie bar, during happy hour.

This book is a collage of wonderful images that work up to a point, as the author himself notes. That is actually their beauty, because they describe the essence of basic notions without getting technical; from the capital structure of a company, to the banking system, to the basic and complex financial engineering products. Those that actually, became self-destruction mechanisms for the financial monsters resulting from ample deregulation and extremely low interest rates over a very long period.

The author uses a rich variety of metaphors to explain the big picture of the basic concepts he has chosen to cover. A few have been widely used, like the insurance explanation for credit default swaps or the imagery of some type of water system, a sponge, and the pool water level, for the explanation of the money supply.
But mostly the metaphors are ingeniously original; like the waltz dancing ballroom for the marketplace; the fish market distinction for emphasizing the mysterious and dangerous nature of the markets; the three little pigs story for shares, short selling and more; the skipping rope in the playground for the bond price yield relationship; the ice cream business for capital markets.

My three favorite metaphors are:
- Using a variety of family issues that are related to ordering the Thanksgiving turkey, to explain the basic derivative products like futures, calls and puts.
- Using a Godfather type scenario to describe the 11 Federal Reserve board members as captains. Luca, the hired gun man, as the Fed. The dialogue artfully explains the function of the banking system at that level.
- Using a silver tray with a pyramid of glasses piled up on it, in several layers, to describe various mortgage backed securities and the seniority of the payments, by pouring a bottle of champagne over the pyramid.

The talent of the author as a writer and an explanation expert is once again shown in the last page of the book. He wraps it up by noting: “knowledge and understanding can only be acquired if the markets are demystified”. He has certainly succeeded in uncovering mysteries or stereotypical miss-understandings or fears about complex notions.

http://efipyl-efi.blogspot.gr/2013/04...

[Cameron · Rating 5 out of 5]

A great book on the basics of economics with easy (sometimes too basic) real life examples, but actually makes learning some tricky Econ terms and financial tools enjoyable. Who knew Mortgage Backed Securities could be so interesting! I'm a sucker for macroeconomics principles

[Kumanan Murugesan · Rating 5 out of 5]

As the title says plain and simple, Paddy hirsch has clearly explained the macro economic fundamentals. I enjoyed reading it..

[Mustafa Mujahid · Rating 5 out of 5]

Thoroughly enjoyable

[Richard Howard · Rating 4 out of 5]

I studied Economics at university way back when in the 70s. After two years I knew a lot about the supply and demand curves and opportunity costs but nothing about how financial markets actually work. To this day I don't know how the stock market functions. This little book does an admirable job of explaining both but I know I'll have to read it at least twice more before I'll have more than a superficial understanding.
The modern economy is hideously complex, as is evidenced by how often government gets its policies wrong and also how bankers and their ilk have a dangerous stranglehold on policy. 'It's just too difficult for your tiny minds, so let us just get on with it.' seems to be their call. So, governments do, and all that happens is the rich get richer and the poor get poorer.
We need to break free from the mantra 'The market decides what's best.' because, patently, it doesn't.
This book should be mandatory reading for every citizen.

[Kris Chow · Rating 3 out of 5]

It's good if you want to get some fundamental knowledge on financial market (e.g. terminology, causes of 2008 financial crisis). But I find the book lacking of in-depth discussion on different financial instruments and the financial market. The example used in the book to explain those terms are not very easy to remember.

[Niklas Heer · Rating 4 out of 5]

You get exactly what the title promises: a plain and simple explanation of the financial market.
The author achieves this by using good examples and analogies.
I can recommend this book to everyone seeking to understand the financial market better.

[Christian Rafael · Rating 4 out of 5]

Really good! It taught a lot of complex concepts in nice, digestible ways. Sometimes it was way too oversimplified, though. Some of the metaphors and analogies could also do with some re-working. I liked it :DDDD.

[Ryan_hg · Rating 5 out of 5]

Glad that I took the time to read it. Thanks Paddy Hirsch, you explained the financial market in such a way that even a preschooler could understand. This is a truly amazing book

[Scarlett Che · Rating 4 out of 5]

Easy and cute

[James Traxler · Rating 5 out of 5]

Beautifully clear explanations.

[Austin · Rating 5 out of 5]

Get educated

Great way to understand the markets.
If you want to get well versed in Financial markets and Economics this is your book.

[Rodney G Mogen · Rating 5 out of 5]

Very simple explanations

As a economist, masters, and as a consultant explaining economics to clients this books makes it very simple and easy to explain and discuss.

[William · Rating 5 out of 5]

A perfect primer for anyone wishing to have a better understanding of how markets work and why when they don’t.

[Tugrul Yuksel · Rating 5 out of 5]

Fun intro, ends a bit abruptly

It has fun examples explaining the jargon around finance. Somehow, the book ends after going into 2008 financial crisis. Still highly recommend.

[Umair · Rating 4 out of 5]

Great overview. Recommended for kids and folks who want to get a basics of how markets work.

[Adam L · Rating 4 out of 5]

Very good overview of how the markets and banking system work, details about them, and terminology explained in ways that are easy to understand.

[HY Wong · Rating 4 out of 5]

Pretty great read for beginners in understanding the complex jargon of the financial world and some of the history of the tools and mindsets that led to the last few financial crisis.

[David Coody · Rating 5 out of 5]

To my fellow blockheads, this book will help make what is so dang strange about markets and the secret mechanics of finance into something relatable and understandable. This book is worth two MBA’s.

[Zach · Rating 4 out of 5]

This book helped explain nuances in investing that I did not fully understand. There are still a few things that I need to learn more about but I am way ahead of where I was a week ago.

[Eileen · Rating 4 out of 5]

A clear overview of economics with helpful stories to illustrate ideas.

[The Nomadic Book Reviewer · Rating 4 out of 5]

****

[Mildy · Rating 5 out of 5]

As a faithful listener of marketplace/ marketplace money as well as NPR's planet money (with degrees in accounting and finance), I sort of understood the majority of the topic in this book already; but I still think this is a worthwhile read.

The analogies used in this book help illustrate and explain in an easy to understand languange on how the markets work. The writing is excellent, it does just what the title says, explaining economics in a plain and simple terms. It's highly recommendable.

BTW, several months ago, out on a whim, I hazard a guess on the marketplace money Facebook page about where a picture of a copy of this book was taken. The next thing that happnned was Paddy Hirsch sent me a copy of the book. And that was part of the reason why it took me so long to finish it. It's my own copy. I tried to finish books I borrowed from the library and the books on order kept on coming. It has nothing to do with the quality of this book!

[Alexander Ryan · Rating 4 out of 5]

Well, just a basic description of the main parts of the financial system. I already knew probably 70% of this but it did a great job at using fake and simplified examples of things i didn't understand like Credit Default Obligations and Credit Default Swaps. I learned that "par" means paying 100% of the original price of a bond, I found out a cash settlement is like trading on the futures market but instead of actually trading the commodity the cash equivalent is paid out, a swap is simply paying a more consistent or a more volatile mortgage interest rate by swapping with someone else with investment banks just linking the two swappers together, CMO is simply paying a fee to receive the interest rate payments on mortgages, an asset backed security is any form of CMO with any asset, CDOs are securitarized ABS, and CDS is basically insuring any asset for a fee each month which is what AIG does to Bank's loans. This book was interesting and was a quick read so 4 stars

[Anna · Rating 5 out of 5]

Won on Goodreads in August 2012.

A very clear primer for economics vocabulary. It is written in simple language that is accessible to anyone. Stories and examples are used to demonstrate how each of the things described functions. There is a little bit of history of markets to show how they function, what happens when they don't work, and why. It's definitely not a full course in economics of markets but it is plenty enough to help readers understand the economics terms used in the media.

I will be passing this book on to a friend and recommending it to others.

[Tania · Rating 5 out of 5]

Having grabbed this book on a whim from the library, I am surprised that the book turns out to be a very good, easy-to-understand explanation on the various financial terms that have been thrown around in the past few years. More than that, it explains the systems in place (US-specific), why the crisis happened, and what measures can / have been tried.

Beginners will get the most value out of the book.

[Judy · Rating 2 out of 5]

I won this through the GoodReads First Reads giveaway. It took me awhile to read but overall I found it interesting. It helped me brush up on some college economics and get a better feeling for the banking market meltdown in 2008. This book lived up to my expectation (per book jacket) that it would explain how the markets work in simple terms - some of the examples were very clever and lively.

[Aleksander · Rating 4 out of 5]

It was a great description of the financial markets foe America. The book explains the markets in the most simple but engaging way. He uses pictures and commentary to describe all of the different forms of financing. I believe this will help me greater understand the way one company can affect all others.

[Lisa · Rating 4 out of 5]

Want a book that simply explains all you need to know about the stock market and economics? Then this is the perfect book. It would be fantastic for someone who is new to the stock market and is interested in learning or for first year economic students. Highly recommend!

[Eric · Rating 3 out of 5]

This book does a good job of simplifying some very complicated things. It explains in simple terms many of the problems and events that led up to the Great Recession. The book is written in a very readable and entertaining way--it even has illustrations.