Bus595 Open Yale Lecture 1

Open Yale 1st Lecture by Professor Shiller

http://oyc.yale.edu/economics/econ-252-11/lecture-1

Introduction to the course

SUMMARY:

What is the purpose of finance? In general, people tend to think it is about how to make money. In a certain extent it is true. Professor Shiller repeatedly emphasized that it is not only making money but the technique/technology/method to make things happen in large scale, has power to change the world in better way. 


What are the elements of good finance people? They know how to make the things happen, have effects to the society, have a sense of philanthropy, and at last, are hard-working. These are the gifted talents not many people have.

My understanding is that finance is to keep the world and life normal, has power to make big things happen. However we must watch out “business without ethics”

NOTES:

• Basic / Undergraduate can take
• Market = Real world, practical, society, more general than trading
• Financial Market = structure, large scale, resource allocation, ventures, returns, managing risk
• Details: how thing work, make things happen (large scale), banking insurance securities, crisis, future
• US / World
• Open-Yale free class 2008/2011
• Need Mathematics but minimum
• Self-contained
• 6 TAs for this course (not for open Yale)
• Purpose: Do things to the world.  Finance = Fundamental of the sciety.  Not making money.  Technology to do things. Engineering. Social science aspects. 
• About textbooks
• Career oriented
• Finance among occupations
• Importance of Financial technique
• Forbs 400 richest people = … ‘0’ business
• Finance == Making things happen. Getting capital mass scale
• i.e. Andrew Carnegie == steel company, essay, 55+, business (make things happen)
• Elements of good business/finance people:  Practical  Hard working  Gifted
• Outlines for all lectures