"Economy to walk around the house" is a book that tries to help ordinary citizens understand different economic concepts that we see on a daily basis. Although the intention is good, the result is not so because of some serious errors.
In this article I will give you my opinion of the book "Economy of walking around the house" by the authors Olvido Macías Valle, Carlos Rodríguez Braun, Ignacio Rodríguez Burgos and Pedro Pablo González Vicente.
Economy technical sheet for walking around the house
- Title: Savings to walk around the house
- Authors: Olvido Macías Valle, Carlos Rodríguez Braun, Ignacio Rodríguez Burgos, Pedro Pablo González Vicente.
- Publisher: LID
- Page: 166
Analysis and opinion of the book
The book Economy to walk around the house has 4 authors:
- Olvido Macías Valle: Journalist
- Carlos Rodríguez Braun: Professor of History of Economic Thought at the Complutense University.
- Ignacio Rodríguez Burgos: Chief Editor of the Economics section of Onda Cero Radio.
- Pedro Pablo González Vicente: Responsible for The Compass of the Economy at Onda Cero Radio.
The objective of the book is to bring current economics concepts to the general public, as well as to help promote financial culture for all audiences. For example, the book answers the following questions:
- Why is it so difficult to create a company in Spain?
- How can you educate your children in the culture of savings?
- Is it convenient to make a will? When?
- Is it more advisable to live in rent until you save a considerable amount of money to buy a home or start buying it?
- What is a reverse mortgage?
- What does it mean to save the bank? Why can't banks fail like other companies?
- What consequences would leaving the euro have for a country?
The format of the book is structured in independent questions and answers. Its simplicity stands out when it comes to explaining economic issues that can become very complex. The book covers the following topics: Family, Housing, Employment, Insurance, Taxes, Banking, Investment and the Economy in general.
The main problem with Home Economics is that the question-and-answer section on “investing” in the book is quite improvable, even being very deficient in some of its answers. I will give you three examples:
In the question "What tips are suitable for investing money?", Your answer begins like this:
"The first maxim is that they never give hard to peseta. The profitability of the investment increases as the risk of the investment increases, that is, the possibility of losing money. The higher the risk, the higher the interest. '"
The authors start from an uncertain premise, which is the efficiency of markets. Of course, it is also very widespread, especially in academic environments. It's a shame this book doesn't help to disprove it. As Warren Buffett puts it:
"If the markets were efficient, I would be begging"
The book also says that:
"The most prudent saver will leave the money in bank deposits"
The problem is that it must be taken into account that in many cases bank deposits do not generate enough profitability to face inflation. Therefore, they cause their "investors" to lose purchasing power.
Finally, the book recommends that:
"When investing in the stock market you have to establish a loss limit from which the title is sold automatically so as not to accumulate more declines"
In other words, the first book I recommend a fundamental analysis of companies combined with the so-called "stop loss". This absurd strategy of investing in companies because they are cheap and selling when they are cheaper still does not make sense. It is these speculative tactics that lead investors to lose money in the long run.
In short, this book is a missed opportunity to bring the world of investment closer to everyone. It's a shame, as the other parts of the book are quite interesting and instructive, although some of his views may be debatable.
Economy assessment to walk around the house
Once again, we find a book that seems interesting, but that falls back into the usual topics on investment issues. Therefore, I do not recommend it.
- Puntuación: 4, merece a suspense for the sección sobre "inversión"
- Level: Basic
- Recommended for: People who want to better understand current economic issues without previous knowledge of economics, although on investment issues the book leaves a lot to be desired.