.04 What I'm Reading

I'm back! I missed last week's post because I was coming back from Disneyland with my fam. Speaking of which, can we talk about Disneyland for a second?

So fun to watch our kids enjoy the "Disneyland magic." So stinking exhausting for the grown-ups!! After five days of being around people, this introvert was ready to get home, lock myself in my bedroom, and not speak to anyone for a few days.

Now back to our regular program…

I do have five books to discuss this week (three audio and two old-fashion books) — but it is really two weeks worth of reading, so no need to call me out on this one.

For this week's reading, I was a little all over the board. I read two books on economics/finance, one fiction, one on the fundamentals of Christian teaching, and one on time-management strategies.

However, there is some order in the madness. The Age of Addiction increased my interest in how behavior affects societal habits and markets, and that led me to one book on the recent economic calamities and one on personal finance. I read two of the books because they have been on my list for a while. I read the one on time-management because I needed something to listen to while I exercised.

Also remember, before you go, let me know what you are reading in the comments.

Book: How Markets Fail: The Logic of Economic Calamities, John Cassidy (audiobook)

Background

How Markets Fail was written by John Cassidy and published in 2009. Cassidy is an economist and journalist. He received his undergraduate degree from University College, Oxford, and studied at Harvard University on a Harkness Fellowship. Cassidy also has two master's degrees. One in journalism from Columbia University and one in economics from New York University.

How Markets Fail examines the dot-com and housing bubbles through the lens of modern economic history. Cassidy begins his examination with The Wealth of Nations and works through how a free market economy was implemented in the U.S. and its subsequent effect on markets. It is important to note, though Cassidy doesn't come right out and say it, this book is written from a Keynesian point of view.

What I Like

This is one of the more thought-provoking books I have read this year. Up until recently, most of my knowledge about the dot-com and housing bubbles came from The Big Short and articles shared by Facebook friends (and usually those articles were either erroneous or swung too far in one direction or the other).

Though Cassidy's examination of the market had a clear bias (he wasn't objectively reporting on happenings and then drawing conclusions; instead he set out from the get-go to prove that Keynesian economics was the direction to go and then worked to prove that theory), this book definitely challenged me to do further research to increase my understanding of the markets in the U.S. and draw my own conclusions.

Final Thoughts

Okay, I have to get this out. Based on the title, I thought this book would examine several different failed markets (ranging from The Financial Panic of 33 AD to Tulip mania to the recent bubbles) and then extrapolate based on those market failures.

However, what this book actually did is give a history of economic theory, examine recent bubbles, and then worked to prove that Keynesian economics will eliminate the potential for future bubbles. After listening to The Age of Addiction and the way that author presented facts and then allowed the reader to think for themselves, this book's delivery was a bit of a disappointment. And frankly, I found the title misleading.

That said, this book was incredibly fascinating and thought-provoking. One of the biggest take-aways is that markets have a symbiotic relationship and are based on human behavior (which explains the foundation, rise, and necessity of behavioral economics).

I think one thing I will continue to mull over is that we know we cannot predict markets because we cannot predict human behavior. Except for that, herd behavior—something that is a part of the human condition and something investors are known for—is predictable. During a bull market, the herd tends to be overly optimistic, while the cautious are decidedly outliers. During a bear market, the herd tends to be pessimistic.

And it is this herd behavior (or instinct) that allows Benjamin Graham's advice to "buy from pessimists and sell to optimists" work for people like Warren Buffett. However, separating yourself from the herd is an incredibly difficult thing to do. Our evolutionary instincts tell us there is safety in numbers.

I didn't walk away with any straight answers from this book. Cassidy concludes that government intervention is needed to regulate the free market and to stop bubbles from getting too big, which I agree with, to an extent. However, here is the kicker.

Of what is our representative democratic government comprised? Answer: people. What do people tend to do? Stick with the herd. Call me a skeptic, but even with government oversight, we are bound to see another bubble grow and burst (or markets rise to ridiculous heights and fall) because we cannot escape the human component of market regulation.

In the meantime, I'll be reading, learning, growing, and challenging my beliefs concerning personal finance and economic policy.

Book: The Baron's Apprenticeship, George MacDonald (old-fashion book)

Background

George MacDonald was a 19th-century author who impacted writers like C.S. Lewis, G.K. Chesterton, Lewis Carroll, Mark Twain, and Oswald Chambers. MacDonald is most famous for his children's fantasy novels.

The Baron's Apprenticeship is the final book in George MacDonald's The Curate of Glaston trilogy. (You can read more about that trilogy here.) In The Baron's Apprenticeship, we find Wingfold (the Curate that the trilogy centers around) now living in London with his wife. This time Wingfold's influence affects a bookbinder named Richard. The reader discovers that Richard's history is unknown, and MacDonald masterfully unfolds his story both to the reader and to Richard simultaneously.

What I like

This was a charming novel. I liked it better than The Lady's Confession (the second book in the trilogy) but not as much as The Curate's Awakening (the first book in the trilogy). I enjoy the way MacDonald develops such relatable characters. This book also has a pretty good dose of theology in it that I found thought-provoking and inspiring.

Final Thoughts

I said this before, but I think MacDonald is a writer everyone should read, even if they do not follow the Christian faith. MacDonald treads the line between complexity and simplicity beautifully. This is the type of book you can read right before you go to bed and also a book that will inspire you to think deeper about life's biggest questions.

Book: The Millionaire Next Door (abridged), Thomas J. Stanley (audiobook)

Background

Thomas J. Stanley was a business theorist who taught marketing at the University of Tennessee, University of Georgia, and Georgia State University. He also authored several books.

His first couple of books were on marketing to the affluent. It was while researching ways to market to the affluent that he stumbled on the "secrets" of the average America Millionaire. Thus, The Millionaire Next Door was born.

The Millionaire Next Door was written in 1996 and detailed the lives of the majority of millionaires in America. Stanley makes an important distinction between those who live like they are rich and those who actually have over a million dollars in their bank account. (As Dave Ramsey, who was influenced by Stanley, says, "If you make a million, but you spend a million you're still broke.”)

What I like

I love, love, loved this book. This book is my jam. My husband and I are Dave Ramsey fans. We can safely say there are many things we wouldn't be able to do today if we hadn't made the financial sacrifices we did in the early years of marriage.

I think what I like most about this book is it removes any room for self-pity and excuses. You either make choices that lead you toward financial stability, or you don't. Darren Hardy also talked this in The Compound Effect, as he pointed out that the "luckiest people" were also the people who were disciplined and in the position (because of their sacrifices) to take advantage of good opportunities when they came.

I think there is a tendency today to push against this type of talk because we rehearse all the "what-ifs" of people in hard circumstances. But that type of thinking doesn't effect change. I feel more strongly about that after having the family live with us, reading The Age of Addiction, and in my continued research on the homeless crisis and mental health. We are all faced with difficult stuff in life, some more than others, but we can also make changes if we choose to move in a different direction. As for financial health, it starts one step at a time, and this book is one of those steps.

Final Thoughts

You should read this book.

Book: Mere Christianity, C.S. Lewis (old-fashion book)

Background

Mere Christianity is the transcription of radio talks that C.S. Lewis gave during WWII. It is probably one of his most famous books and differs from some of his other books on Christianity in that it written in conversational English.

Mere Christianity explores the fundamentals of Christianity. He ignores denominational differences and looks at what we all, as Christians, can agree. However, this book is more than a philosophical discussion on the fundamentals of Christianity; it is also a call for unity among the body. Something that was desperately needed in war-torn Britain, and is desperately needed today.

What I like

I love C.S. Lewis. Reading his writing feels more like having a conversation with a friend, or grandpa, more than any other author I know. That said, I think I should mention I have a clear bias toward anything Lewis writes. (I spent about a year and a half reading every single known published letter of his — which made me fall in love with his logic, his openness about his humanness, and his little known sacrificial generosity and love for his neighbor.)

So it is of no surprise I adored this book. It had been on my list for a while, and so while attempting to recover from a week at Disneyland, I spent about three hours holed up in my room reading this book.

What I loved most in that C.S. Lewis drills right down to the point. From his argument that it would be impossible for someone who claims to be the Messiah to be just a great moral teacher** or what it means to become like Christ, Lewis always gets to the heart of the matter and cuts out all the other B.S. I love that.

I can't leave you without quoting his arguments about the purpose of the church. It's just too good.

"Just as it is easy to think the State has a lot of different objects—military, political, economic, and whatnot. But in a way, things are much simpler than that. The State exists to promote and to protect the ordinary happiness of human beings in this life. A husband and wife chatting over a fire, a couple of friends having a game of darts in a pub, a man reading a book in his own room, or digging in his own garden—that is what the State is there for. And unless they are helping to increase and prolong and protect such moments, all the laws, parliaments, armies, courts, police economics, etc., are simply a waste of time. In the same way, the Church exists for nothing else but to draw men into Christ, to make them little Christs. If they are not doing that, all the cathedrals, clergy, missions, sermons, even the Bible itself, are simply a waste of time. God became Man for no other purpose" (169).

That, my friends, is the heart of C.S. Lewis.

Final Thoughts

I waited too long to pick up this book. If you are a Christian, read this book. If you are interested in Christianity, read this book. If you have no interest in Christianity but want to understand their intentions and reasons for having faith, read this book.

I know I will reread this one soon.

**For if Christ's claims weren't true, then he is a liar and a lunatic who has led millions astray, so Christ either is the Messiah or nothing at all.

Book: Time Management Ninja: 21 Rules for More Time and Less Stress in Your Life, Craig Jarrow (audiobook)

Background

Craig Jarrow is the Director of Strategic Initiatives at MarketSource, Inc. and a Navy Veteran. He also runs the blog "Time Management Ninja," the book's namesake.

Time Management Ninja is a quick read (the audiobook is two hours) and outlines how one can create more margin in their life.

What I like

I love time management books. Even though I am somewhat versed in time management, I continue reading books on that subject because they are edifying and inspire me.

This book was pretty simple, and I didn't really learn anything new. (Most time management books boil down to have a good system in place, wake up earlier, block your time, and stop watching TV and scrolling through social media). However, I enjoyed the way he outlined the book in 21 rules, and I especially enjoyed the description of his routine. (Tell me there are more of you out there who geek out on learning about other people's daily rhythms.)

Final Thoughts

I wouldn't say that this is a groundbreaking book on time management. However, if you are new to the subject and are trying to find ways to use your time better, I think this is a great beginner's guide.

Come back next week for my thoughts on the Intelligent Investor and one other book that had me saying, "No way!! What the heck? What?" all the way through.

And finally, don't forget to tell me what you are reading in the comments!!