Within the first minute and 34 seconds you know you are going to understand this book because Denning quotes James Dyson:
“Of the world’s ten largest corporations by revenue, 9 make big, heavy things, like cars.”
This is easy to follow, sensible stuff – and just the kind of obviousness that industrial strength money market manuals pass over.
Give him time, and Denning will explain a lot of “obvious” things. For example, that you can’t automatically grow rich by buying stocks. Or that you can’t automatically stay rich by being an American. Or that just because you live in America doesn’t mean you can’t invest in anything but fictional (paper) assets. Or that a bear is called a bear because once upon a time when traders were also hunters, bear skin jobbers sold skins from bears they had not yet caught. By entering into these early futures contracts, the hunters were guaranteed a fixed price. By “selling short” they lost out on the possibility of getting a higher price for their bear skins in the future. The practice came to describe those who sold short on a stock or commodity.
In fact, within the first 13 minutes, the ‘obvious’ no longer is.
Home ownership, Denning writes in 2005, is “the new serfdom” and paints a picture of a housing bubble where no equity is built and no real ownership is achieved. Combine falling home prices with increases in monthly payments AND a flat income, writes Denning, and you get trouble. In other words, you get 2008.