Books discuss financial system

New York, Feb 24: The anxiety on Wall Street is likely to linger for some time. But that may be lessened for average investors by a greater understanding of how the markets work.

Three recent book releases may help you gain an understanding of how the markets work, and help you sort out the barrage of possible changes to the financial system being discussed in Washington, DC. Title: The Wall Street Journal Guide to the End of Wall Street As We Know It Author: Dave Kansas Publisher: Collins Business, an imprint of HarperCollins Price: $15.99 (paperback) Summary: This book by Dave Kansas — editor at large of FiLife.com and former editor of The Wall Street Journal`s Money & Investing section — helps cut through the clutter of headlines over regarding the seismic changes reshaping the country`s financial system. Kansas goes over the roots of the current crisis and the roles of factors such as subprime mortgages, derivatives, ratings agencies and private equity funds. Using a workbook format, each chapter ends with a FAQ section that explains financial terms and answers common questions. Peppered throughout are historical snapshots on companies like Bear Stearns and Merrill Lynch and biographies on key players such as Timothy Geithner and Ben Bernanke. The book also aims to give average investors some guidance by discussing the safety of various investment vehicles, such as money market savings and brokerage accounts. Quote: "Though the changes on Main Street will be very painful for some, the changes on Wall Street will create an entirely different financial landscape. It will take some time to sort out just how the financial system will work." Title: Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street Author: Janet Tavakoli Publisher: John Wiley & Sons Price: $24.95 (hardcover) Summary: Much that`s written about Warren Buffett is done at arms length, and often from New York, or some other financial hub far from Buffett`s domain in Omaha, Nebraska. Janet Tavakoli brings impressive credentials in trying to take readers inside the mind of the Oracle of Omaha. Buffett invited the financial derivatives expert to lunch after reading one of her previous books, and the meeting led to a three-year exchange of e-mails and letters. The book focuses on their discussions of the unchecked credit risks that led to the ongoing Wall Street meltdown. But there`s also a more basic message about how common sense can triumph over greed and panic. Quote: "As long as Wall Street enhances revenues with leverage to prop up kingly bonuses, as long as there are few personal consequences for CEOs (and board members and other top executives) for shoddy risk management, as long as CEOs are allowed to walk away with millions, nothing will change. The fact that shareholders are wiped out is no deterrent, and moral hazard will live on." Title: The Seven Rules of Wall Street Author: Sam Stovall Publisher: McGraw Hill Price: $21.95 (hardcover) Summary: For those looking for ways to help sort out the mess on Wall Street and nudge their investments back to life, Sam Stovall, the chief investment strategist for Standard & Poor`s Equity Research, offers seven. Using a collection of old Wall Street sayings as guides for an investment strategy, the author expands on a discussion he regularly leads at an annual investor conference. But his take on these maxims isn`t always predictable. For example, the chapter under "Sell In May, Then Go Away," doesn`t recommend you dump stocks during the summer months. If you do so, you may miss out an opportunity to take advantage of stocks that generally perform well during summertime, Stovall says, and instead he explores which sectors tend to do better when the market overall typically slows down. Each chapter is backed up with statistical analysis, charts and graphs that illustrate his plain language explanations and suggestions. Quote: "Will a new bull market emerge in 2009? Will the Rules of Wall Street soar again? No one knows for sure, but I believe that if you stay out of stocks because of the beating you just received, you will likely end up at the airport when your ship finally comes in." Bureau Report