A Note from the Author … Dr. Denise R. Ames …

A study of the financial sector within the global economy is not an easy task. Many of the concepts and terms may be unfamiliar to you. I have therefore designed this book to provide an accessible and understandable examination of the inner workings of the financial sector today.

When I first began researching the financial sector, I found it shrouded in a veneer of mistaken assumptions and an intractable worldview that many of us accept as reality. But as I began to peel away the layers, I was surprised to discover that the financial sector operates quite differently from many of our commonly held assumptions. For example, it can be difficult to comprehend that the financial sector is not necessarily focused on creating value or contributing to the broader economy. Its primary objective is to generate profit, which is not the same as creating economic value. Indeed, there is a yawning divide between the real economy of Main Street and the financial economy of Wall Street.

In my research, I have found that many books focus on what is wrong with the financial system or recount the disastrous financial crisis of 2008, yet they fail to provide a clear understanding of why this turmoil arose in the first place. Blaming it all on greedy bankers or misguided homeowners does not get to the roots of the problem. This book will give you a deeper understanding of how finance is organized, how it operates, and who benefits from it. With this understanding, we will be better equipped to critique the financial sector, identify its fault lines, and propose workable solutions.

So, please join me as we peel back the layers and uncover the inner workings of the financial sector—an important and influential part of the global economy. I hope you will find this holistic approach to finance a journey that is both challenging and worthwhile.