Elie Cohen. 408 pages. Publisher: Fayard (October 12 2005)
There is a conundrum of contemporary capitalism. How to explain that the biggest stock market crash we've known since 1929, the bursting of the Internet bubble, has had none of the usual effects on the general economy? Why fraudulent bankruptcy of Enron and Worldcom do not they have slowed the spread to global financial capitalism in the US? To understand the new logic at work, Elie Cohen has chosen to analyze the rise and fall of two iconic companies of 1990 years: Enron and Vivendi. Far from engaging the sole responsibility of their promoters impetuous, these failures reveal more deeply the role of financial markets in determining industrial strategies. Extremely reactive, market finance reduces risk by spreading and worsening encouraging speculation. This book analyzes the training market myths, bubbles, management methods, it depicts the universe of players in the risk industry (analysts, auditors, evaluators) and reports to a system where the collective error is preferred to break the consensus. How to regulate financial markets without impeding innovation capacity? How to prevent arbitrage between regulations in the new age of capitalism? Such are the problems facing our governments and major international financial institutions, Elie Cohen answers questions with clarity and verve.
Elie Cohen is an economist, director of research at the CNRS and the Fondation Nationale des Sciences Politiques. He is the author of Colbertism "high tech" (1992), La Tentation hexagonal (1996) and the World Economic Order (2001).