The Analytical Report about “Running Money” by Andy Kessler
Introduction
The world of hedge funds is obscure and confusing. The market has a reason of existence that is to compel the super-riches towards blowing their money into unwise investments that do not produce any substantial returns for the stakeholders. However, they favored the fund’s managers to receive one percent increment in their salaries on annual basis and they earned twenty percent of the annum’s profits as well. The title of the book reveals a deeper reality of economic world that weighs everything in monetary terms, and people need to prove their financial power and fortune in order to receive romantic interest from their perspective partners. There is an economic side to personal relations as well so one cannot escape from the fiscal realities of the 21st century, and therefore, Running Money stands to represent the nature of finance as the cause behind running of this world. The author stimulates thought in the readers by comparing the nature of the money with that of a running stream. When its sense of flow breaks down then, the process of erosion kicks in and continues until the last shred of purity in the water dies out. The money has to keep moving from one sector to another in order to sustain an economic system. The investment is the backbone of any fiscal system in the world, but the investors have to take the relevant decisions with a cool head, and they have to analyze the overall situation of the companies and nations as well so that they can choose the most sensible opportunities in this regard.
The hedge funds had housed investments that did not make any economic sense, and the people wanted to get rid of their monies in the hopes of earning a return on them. What really happened was quite different from the expectations of the investing parties. The minimum requirement of investing in the hedge fund was one billion in the high-days of the industry, and one can infer that we are talking about big money when we analyze the market of investments. The humans’ ability to urge to have more than they have at any given time is induced to burn more intensively in the featured market so that they can make irrational choices (Kessler, 261). The fund’s managers have the luxury of naming market fluctuations and recession for the failures of certain investments. The managers gather substantial amount of investments and a few of them failed and others succeed creating just enough success to keep the pockets of the managers warm. In this way, the lack of professionalism on the behalf of hedge funds’ management came up to the surface via the featured work. Andy Kessler admitted that he suggested and even forced people into harmful investments while having a hope that they might not listen, but most of them did and at the end, they lived to regret their actions later.
However, losing money to hedge funds was the least of the problems that big investors have faced because they have sufficient money stashed in their accounts that loss of a billion even billions appeared to be a blip in their financial lives. The well-dressed thieves and robbers worked their numbers on people in order to have them investing, but the money transferred from the accounts of investors to those of managers, and the funds remained inactive in terms of causing any substantial economic and fiscal activity that would have benefitted the surrounding societies. The key message that the book shared with the world was concerned about moral hazards that surround the investors in the world of business because managers have no sense of professionalism and ethical duty to shareholders, and therefore they often play people into making wrong fiscal choices in order to prey on their money.
Nevertheless, the writer added a piece of advice in the work as well. He suggested that creation of wealth is only possible in the world of technology because inventors have the best shot at becoming business successes in the future. At the same time, we can take the instance from Kessler’s book “Eating People” that values entrepreneurial spirit with reference to the power to serve the socioeconomic goals of the societies. The previous manuscript does not offer precise details about finding the solutions to the highlighted problems, but the latter one has it all, and it is recommended highly that one should purchase them both in one go so that the second one immediately can mitigate confusions lifted by the first one. The author admitted and confessed to committing financial atrocities in the world of business, and currently, he feels ashamed of his actions.
The manager developed the ability of authorship in order to articulate his guilt. The works are getting clearer regarding what Andy wants to tell his readers. His whole life was spent in the role of a manager who believed in the concept of economic rationality. He practiced it in the most ruthless forms possible, but he needs satisfaction in the life because he is approaching alleged final years of his life, and therefore, he wants to make some of his crimes right by guiding future generations of managers to remain awake to humanistic values of their profession (Kessler, 163). Additionally, the artist needs to tell people that money is running in the society as a stream, and every one of us will receive the due amount so there is no point in selling one’s soul in order to earn a few extra bucks.
Conclusion
The world of business has large number of stories that guide people about managers’ urges to boost his or her sales by using ethical and unethical means. One Andy Kessler came forth with the documented confessions that he had to commit in order to be effective at his job, but now he finds out that money is important. Yet, he emphasizes that one must evaluate any business’s ability to cause social and economic development in the surrounding society before investing. He guided managers about limiting their greed because too much of that can lead them to have chaos in their lives. His partner and he shut down the hedge fund because the saturation point was nearing, and they had to cut the losses in order to avoid the possibility of all-out invasion by the recession that lately caused turmoil in the country, and hedge funds and real estate market crashed like eggs when the time struck as hard as life. Kessler and his associate were able to save what they had by taking a timely decision of quitting.
Works Cited
Kessler, Andy. Eat People: And Other Unapologetic Rules for Game-Changing Entrepreneurs. New York: Portfolio Trade, 2012. Online.
Kessler, Andy. Running Money: Hedge Fund Honchos, Monster Markets and My Hunt for the Big Score. New York: HarperBusiness, 2005. Online.
