Tag Archives: Bill Dahl Book Reviews

Adaptive Markets – Financial Evolution at the Speed of Thought – by Andrew W. Lo – A Book Review by Bill Dahl

For a scholar who writes of his early life: “In second grade, my mother received a note from my teacher informing her that I might be “retarded”—the term of art in those days—and could use some extra help.” P. 125 — Welcome to a marvelous book by Andrew W. Lo.


Andrew W. l.o is the Charles E. and Susan T. Harris Professor of Finance at the MIT Sloan School of Management and director of the MIT Laboratory for Financial Engineering. He is the author of Hedge Funds and the coauthor of A Non-Random Walk Down Wall Street and The Econometrics of Financial Markets (all Princeton University Press). He is also the founder of AlphaSimplex Group, a quantitative investment management company based in Cambridge, Massachusetts.

What’s great about this book are several things:

  1. You do NOT have to be a graduate student at MIT to enjoy this book. If you enjoy cutting edge multi-disciplinary insights into human behavior, this book is for you.
  2. This book requires unlearning – for me, authors that do this are rare and invaluable.
  3. This book FINALLY begins the arduous process of integrating the science from a multitude of fields into a coherent thesis: :”A new explanation for the contradictions and paradoxes discovered in the battle between the rationalists and the behavioralists. I call this new explanation the Adaptive Markets Hypothesis.”  P. 185.
  4. The author is a superb story teller with no intellectual ax to grind.  His wonderful heart comes through in the way he writes…it just makes the reading experience vastly more enjoyable. Thank you.The nature of our understanding of economics, finance and human behavior is changing (as it must). As one who enjoys writing and research in this genre, I find, as the author states; “But every time I finished one book, I felt impelled to read another because of gaps or inconsistencies in what I’d just read.” P. 302 Adaptive Markets put an end to this experience for me (although I WILL continue reading!!!).

That’s why Adaptive Markets – Financial Evolution at the Speed of Thought – by Andrew W. Lo  is so darn important. The work is very much an integration of the most compelling scientific findings from a myriad of fields that Lo sutures together in a straightforward and coherent manner. It is also a body of work that will undoubtedly inspire additional research.

Evolutionary biology represents an organizing framework for Lo’s reasoning. I found the framework very illuminating. A few quotes from the book:

“The Adaptive Markets Hypothesis tells us that profit-taking alone isn’t enough to explain market success in organizing human behavior. We’re motivated by fear and greed, but also by a sense of fairness, and perhaps most important, by our imaginations.” P. 417

Just as the human eye is susceptible to optical illusions, the human brain is susceptible to illusions about risk and probability.” P. 62

“Economic rationality isn’t wrong; it’s just incomplete.” P. 200

Financial evolution proceeds at the speed thought, where several generations of ideas can come and go within the time span of a productive working lunch.” P. 231

A financial crisis can be as disruptive to people’s lives as a major war.” P. 320

“This means that culture is also subject to evolution, to the same processes of variation, selection, and replication as a biological species or a mental narrative”. P. 345

There are important interactions between culture and environment, in some cases reinforcing bad behavior.” P. 352.

This is a terribly important work. I hope it will inspire the essential, civil dialog and research endeavors that are currently woefully underfunded to explore the emerging, new frontiers in finance – and our understanding of all the audiences in these environments.

I HIGHLY recommend this superb work.




The Many Panics of 1837: People, Politics, and the Creation of a Transatlantic Financial Crisis by Jessica M. Lepler

Superb! Period!


Far too many financial histories inhabit the shelves and stacks that have one thing in common: an intellectual agenda in search of support. This work is a uniquely refreshing exception. It is a work that distinctly deserves the scholarly recognition it has received – from many, diverse audiences.

Lepler Many Panics

I enjoy reading in this subject area. This particular work was delicious for me for a myriad of reasons. Here are a few:

1. Linguistics – Lepler’s appreciation for the words, terms and phrases people used to describe their life experience was precious to me. It is too often overlooked by other authors.

2. The sheer depth and breadth of Lepler’s research was, to say the least, unique and vividly rewarding for her readers.

3. Lepler’s appreciation for the impact of “culture” was quite apparent – again and again – enlightening.

4. AGAIN – Far too many authors who write financial histories seem to have a thesis that they attempt to validate via the introduction of a supporting narrative – such is the human penchant to “be right” and get at “the truth.” Lepler’s methodology and multi-dimensional approach to the issue of “many” panics was terribly refreshing.

5. It was a pleasure to read a financial history book that was authored by a bonafide historian vs. an economist or a political hack with an agenda. The author’s objective dedication to her scholarly craft was apparent on every page.

6. The author’s critiques of other works were, in my opinion, “spot on.” I was grateful for the courage to say what she wrote.

7. I adored the characters brought to life. It made the book fascinating.

8. Lepler’s appreciation for epistemology was apparent throughout.

9. The author’s contributions from the “phrenology folks” were priceless.

10. Lepler’s focus on the impact of communication (or lack thereof) between persons, media outlets of the day, groups and organizations (and governments) is a fundamentally important dimension of the author’s contribution.

As Lepler states on page 253: “Even when economic events seem beyond the control of any individual, the shaping of their meaning remains within our grasp.” – How marvelously this work remained true to this statement – in every sense of the phrase.

My edition of the “Many Panics” by Jessica M. Lepler is marked up like a child writing with crayon on a kitchen wall. This book is a treasure for me and I have learned to become a better researcher and story teller because of it. It is simply VERY rare to have the privilege to devour and digest such a magnificent work. I sincerely hope that Lepler’s dedication to a tireless methodological approach for source documents will serve to inspire other historians and writers – and students – as this work inspired me. This work will occupy a prominent position in my personal library. I will refer to it quite often.



A Nation of Deadbeats by Scott Reynolds Nelson

When you read this book you garner a vastly deeper appreciation for the terms scholar, historian, research and story teller. You also are blessed with a unique narrative regarding the history of America’s financial disasters in the nineteenth century. I’ve done quite a bit of reading in this genre – and this book is a MUST READ.


A Nation of Deadbeats
I truly enjoyed this work. Actually, I became immersed in the narrative and learned more than I could have hoped.

This work has encouraged me to continue to “explore the places where maps have failed us…pushing along in the dark.” (p. 254). Yet, the historical evolution of U.S. capitalism that this work recounts, illuminated the absence of pre-existing maps from which to plot the path ahead. However, this work also revealed for me that man, at every juncture, with his seemingly eternal penchant for wealth and power, and organization – emerged, and injected itself at every opportunity.

For me, this book distinctly reinforced the incontrovertible evidence inhabiting the historical record; when you combine man and money, the emergence of mayhem is a matter of fact. Although we currently live in a time where our culture suggests that we know most everything, can control our environments, and predetermine outcomes of socio-economic (and geo-political) policies – I remain a healthy skeptic…particularly as it relates to ALL things economic. Again, this volume is a reminder to me to remain sensitive to the alerts from my “crap detector” (attached to my forehead, swiveling in a 360, 24-7 – and – solar powered). The “smugness” that inhabits our intellectual, social, economic and political discourse today remains, in my opinion, one of our most profound, enduring weaknesses – as a species – particularly as folks continue to espouse rigidly militant “certainty” about issues; past, current and future. I, for one, appreciate those who possess a high regard for questions vs. those who attempt to cram answers down my throat…as the author’s commentary at the end of the book, directed at his colleagues, elicited deeply appreciative smirks from this reader.

Yes, as some of the author’s final remarks in this book indicate, I too have ongoing concerns about the unregulated and mysterious miasma of rogue waves of capital that seemingly slosh between the shores of our globe…outside the cognitive awareness of the ordinary citizen…capital without margin (“margins impose safety”… p. 251), incalculable leverage, incomprehensible risk, and a source of instability whose magnitude and morph I remain acutely concerned with…as inertia continues to thrust us into places where maps are under construction…pushing along in the dark.…to a yet, unknown destination. Yet, the human motivations remain seemingly unchanged.

This particular work is profoundly appreciated by this reader. Thank you so very much Mr. Reynolds.

I highly recommend it.


BOOKS Recently Read by Bill Dahl at 3/24/17

Here are the books I have recently completed reading through 3/24/17. Yes, my focus is currently the history of the evolution of capitalism in U.S.  I find the degree of financial illiteracy in the U.S. in the 21st century absolutely shocking. History provides a basis from which to more deeply appreciate where, when, how and who influenced  the emergence and current state of this “Grand Experiment.”

Every book always leads me to interest in another. I am particularly grateful to author/historian Jessica Lepler, Assistant Professor of History at the University of New Hampshire (and author of a fantastic work: The Many Panics of 1837: People, Politics, and the Creation of a Transatlantic Financial Crisis. Also – author/historian Stephen Mihm, Associate Professor of History at the University of Georgia and author of a MUST READ: A Nation of Counterfeiters: Capitalists, Con Men, and the Making of the United States (Harvard University Press, 2007). Both these scholars shared their recommended reading lists with me on 19th century U.S. financial history.

Here’s the list of books I have read in this genre in the past few weeks:


The depth and breadth of research contained in this volume is difficult to comprehend. Jessica Lepler invested years in the research and writing of this fascinating treatise – on two continents. My Oh My – this book is a national historical treasure. Period. The characters she brings to life and the various escapades they venture upon – priceless. This volume occupies a distinct place of honor in my personal library

A journey into the untold economic historical mystery that 21st Century Americans are completely unaware of. Thrilling, intriguing, reality of the force of counterfeiting in the history of the U.S. – Gosh, I adored this work. Stephen Mihm is a master researcher, story teller and weaver of the sinew of an oftentimes overlooked subject in the ligaments of U.S. economic history. Honestly, this volume is SIMPLY SPECTACULAR!!!

A sociological and historical classic. The history of risk in the U.S. – insurance companies, the rise of the corporation, the Freedman’s bank, the emergence of employee benefits,  etc.- the

This book explained my never ending discomfort with Timothy Geithner as U.S. Treasury Secretary. I doubt if you will ever see Giethner and Blair breaking bread together after reading this book. The book is insightful for Blair’s inside look at her term as Chairperson of the FDIC during the Great Recession – and her incessant advocacy for the fate of the U.S. consumer and homeowners…a noble effort, throughout years of public service, too often obstructed by others. Without Blair at the helm of the FDIC during the great Recession – trust me – things would have been much worse. Yet, there remains much financial re-engineering yet to be done…as she urges her readers to passionately advocate for TODAY.

No treatment of the history of U.S. economy can overlook the emergence and establishment of railroads. A phenomenal treatise.

A CLASSIC – although focused on the evolution of international banking, the treatment of the U.S. institutions, policy and practice development are a CANNOT MISS THIS BOOK!!!



Recently Read: By Bill Dahl

Okay…okay…I get emails every week asking me what I am reading. So here’s a list of what I have recently read (MOST are for research regarding a book I am currently writing…(Nope – won’t tell so don’t ask – it’s a two year project – look for it in LATE 2018):


  1. The House of Morgan – An American Banking Dynasty and the Rise of Modern Finance – Honestly, a historical treasure. Winner of the National Book Award.

2. America’s Bank: The Epic Struggle to Create the Federal Reserve – by Roger Lowenstein – I adore anything Roger writes.

3. Origins of the CrashThe Great Bubble and Its Undoing – by Roger Lowenstein – An uncharacteristically harsh critique from the pen of Lowenstein. However, for its historical relevance for me, another treasure from Roger.

4. The Empire Express – Building the First Transcontinental Railroad – by  David Haward Bain – LOVE LOVE LOVE this author and writer. WOW! What a story by a splendid story teller. This book will absolutely captivate you via the author’s research and his uncanny ability to share the personalities of the principal players and their interactions.

5. Jay Cooke’s Gamble – The Northern Pacific Railroad, The Sioux and the Panic of 1873 – by M. John Lubetkin – A Tremendous Story that will fill in details of American History that you had been completely unaware of. Superb writer and researcher.


6. The Panic of 1819 – Reactions and Policies by Murray N. Rothbard – A Political science and economic policy classic. I truly enjoyed it.

7. New ERA – Reflections on The Human and Natural History of Central Oregon by Jarold Ramsey – A priceless contribution to the cultural landscape of Central Oregon. ADORED IT!!!

8. East of the Cascades – Philip Brogan – A historical and sociological (geological) classic as it relates to Central Oregon.

More to come in my next post…some of my reading is currently 6-700 page volumes with microscopic print so it takes more time to complete them.



The Great Spiritual Migration by Brian McLaren – A Book Review

McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY


A Review by Bill Dahl

In the Foreword to the book entitled, Mis-Measuring Our Lives,[i] France’s former President Nicolas Sarkozy[ii] wrote:

The time to change our trajectory is now. Amidst all these difficulties we cannot rest content with reacting on a day to day basis; we will not recover from the crisis with just ad hoc solutions…the only thing that will save us is unchaining our minds so as to gather the strength to make the necessary changes. The only thing that will save us is unchaining our minds so as to free ourselves from conformism, conservatism and short sighted interests….such a revolution is inconceivable without deeply challenging the way we represent the challenges of what we undertake, the results of what we do.”[iii]

Although writing in two, somewhat different contexts to a global audience, one underlying theme of McLaren’s new book, The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian is the uncanny parallel with Sarkozy’s tremarks above:

  1. The time to change the trajectory of the worldwide Christian faith is now.
  2. Christians must unchain their minds.
  3. A revolution in Christianity must include deeply challenging the way Christians represent the challenges they undertake, how they behave, and the results of what they do.

McLaren writes:

The Christian faith needs to be radically converted to a new fuel. We need to be energized by something other than beliefs; because beliefs are not the point.” Not the point? That’s not to say beliefs are insignificant. They are powerfully significant, for better or worse.”[iv]

The author then launches into some superb examples of how specific Christian beliefs have led to unfortunate historical and current day outcomes. McLaren envisions the migration like this:

“Must we stay where we are, forever defining ourselves as a system of beliefs, or may we migrate to a new understanding of Christian faith as a way of life, (emphasis is mine), a practice of ongoing personal growth and cultural evolution ?[v]

McLaren then turns to the life of Jesus as the example of what he refers to as the way of love; a life embodying love, mercy, compassion, reconciliation, community, solidarity, friendship, kindness, tolerance, forgiveness, love for neighbor, the other, the earth  and humanity.

McLaren’s thesis is a call to what I refer to as “re-belief.” He makes the distinction between beliefs and faith as follows:

“Beliefs are commonly defined as opinions or judgments about which a person is fully persuaded. Although beliefs generally cannot be proven they are treated among believers as certainties, perhaps not as absolute certainties, but as certain enough that they aren’t up for questioning (statements that a group requires members to and not question or contradict. In contrast, faith is conviction, the deep and motivating sense that a course of action is right and worth doing…a conviction (faith) lived out in the context of uncertainty, involving risk, proceeding not through certainty but through confidence (hope) and expressed through love.”[vi]

McLaren goes on to share very personal examples of his own journey “seeking to conform to the way of Christ by willing to rethink”[vii] the beliefs he was saddled with at certain points in his life. These examples are poignant and powerful, demonstrating walking the talk. This concludes the first section of the book entitled “spiritual migration.”

The second part of the book delves into the essential “theological migration’ where McLaren addresses the issue of the conception of God as a violent God of domination versus a nonviolent God of liberation. He dives into the history of “justifiable homicide,” (my term), violence, prejudice domination, subjugation and “un-love” perpetrated in the name of the faith. He lays out a rational, logical narrative as to how these outcomes are related to our conception of God, our reading of the Bible (literal vs. literary) and other causal factors. He suggests an approach consistent with the way of love.

McLaren titles the third section of the book The Missional Migration. – the transition from organized religion to organizing religion. His focus is on moving away from the extractive, consumptive and unsustainable way of life that is destroying both civilization and planet. In this sense, the migration McLaren is calling for is moving from a “religion organized for self-preservation and privilege to a religion organizing for the common good of all.”[viii] This section contains innumerable practical examples of exactly what some of those beliefs and behaviors for might look like for modern day Christians, modeled by the life of Jesus.

The book contains superb lists of questions at the end of each chapter and three appendices to guide individual readers and groups into further discussion, contemplation and a guide to the behavioral migration to the way of love.

Admittedly, I have read every book Brian McLaren has penned. I have met him on several occasions and enjoyed his presence. His life, mind and passions are inspirational to me on a personal level. As one who is self-described as widely read on the topic(s) of faith and culture, this particular book stands out to me, for several reasons:

  1. As we age, the proximity and reality of the light at the end of this earthly life becomes tangibly more apparent. In this book, it is clear to me that Brian McLaren is no exception to this truth. The passion, compassion, and love for the Christian faith, Jesus, his followers and institutions erected in His name are all distinctly expressed here (as they have been, in my opinion), throughout the author’s lifetime.
  2. There is a rather unique sense of urgency expressed by McLaren in this book. Perhaps, this too, emanates from A. above.
  3. The vision McLaren lays out in this particular writing, is accompanied by a roadmap to guide both individuals and institutions (as he has done in several previous books). However, this particular roadmap is informed by specific global and cultural imperatives where spectating just won’t cut it anymore. The urgency of global challenges (and the state of the Christian faith) demands concurrent, immediate changes in individual and group behavior to positively inform, and re-direct the trajectory of those current challenges.

For me, this book is an urgent call for the faith and the faithful to immediately engage in the process of what has been referred to as de-illusionment. I believe it is also a deeply personal  sharing of McLaren’s actual life journey whereby de-illusionment has been an incredibly important aspect of his development as a person, his relationship with Jesus, and voice for his cherished faith. In this sense, the term de-illusionment is defined in the following:

As he attempts to reappraise his life, a man discovers how much it has been based on illusions, and he is faced with the task of de-illusionment. By this expression I mean a reduction of illusions, a recognition that long held assumptions and beliefs about self and world are not true. This process merits special attention because illusions play so vital a role in our lives throughout the life cycle.”[ix]

There is much here for those involved in organized communities of faith. Clearly, McLaren has not abandoned his deep respect and love for the church, in its myriad of forms, wherever it may be found. In this work, McLaren maintains his ongoing “within-stitutional” (my term) voice, echoing through the corridors of organized religion. The value of the book is also for those with no current church attendance and/or denominational commitment. Yet, if I had one recurring longing during my consumption of this work, it was the resurging hope that Brian McLaren pens a fiction work in the near future; one that may embody what carrying out the vision shared in this book, just might look like…

Read Brian McLaren’s The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian. May you end up where I did, embracing McLaren’s call for V’yisa’u! – To get going, go forward, go farther, NOW!

May “finger by finger, the fist of your little heart be pulled open, where a new depth of naked, essential faith in God mysteriously become possible.”[x]

Buy this book. Share a copy with a friend. Engage in the dialog it compels. Introduce it to your faith community. Unchain your mind. Accept the permission and invitation to re-belief. Begin the essential process of de-illusionment.





[i] Stiglitz, Joseph E., Se, Amartya ans Fitoussi, Jean-Paul Mismeasuring Our Lives – Why GDP Doesn’t Add Up – The Report By The Commission on The Measurement of Economic Performance and Social Progress, Copyright (c) 2010 , The New Press New York, NY Excerpts that make up this quote are compiled from pages vii, xv.

[ii] Nicolas Sarkozy was the President of France from 2007-2012.

iii McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 31.

iv McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 42.

[vi] McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 45

[vii] McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 40.

[viii] McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 153.

[ix] Levinson, Daniel J., The Seasons Of A Man’s Life, New York: Ballantine Books, a division of Simon & Schuster, 1978, p.192. This sociological classic was one of the first longitudinal studies of how people’s beliefs and perceptions change throughout the life cycle.

[x] McLaren, Brian D. – The Great Spiritual Migration – How The World’s Largest Religion is Seeking a Better Way to Be Christian,  Copyright (c) 2016 by Brian D. McLaren Convergent Books, an Imprint of Crown Publishing Group, a Division of Penguin Random House, LLC. New York, NY. p. 203.