Capturing Finance: Arbitrage and Social Domination

Arbitrage is the practice of buying assets in one market at a cheap price and immediately selling them in another market for a profit. It is considered riskless, but the 2008 financial crisis led to the belief that taking on debt is necessary for affording everyday life and investing is necessary to secure retirement income. Carolyn Hardin offers a new way of understanding arbitrage as a means for capturing value in financial capitalism, challenging the narratives that naturalize risk as a necessary element of financial capitalism and social life writ large.

Format: Paperback / softback
Length: 176 pages
Publication date: 13 August 2021
Publisher: Duke University Press

Arbitrage, the intricate trading practice that involves purchasing assets in one market at a discounted price and promptly reselling them in another market for a profit, holds a pivotal role in the realm of financial trading and in our understanding of how financial markets operate. Due to the swiftness of traders' transactions and the utilization of other people's funds, arbitrage is often perceived as a risk-free endeavor. However, the 2008 financial crisis serves as a stark reminder that even seemingly riskless practices can have far-reaching consequences.

In her book "Capturing Finance," Carolyn Hardin presents a fresh perspective on arbitrage as a mechanism for extracting value within the framework of financial capitalism. She elucidates how arbitrage is fundamentally reliant on a system of abstract domination centered around risk. The prevailing commonsense notions that debt is essential for meeting everyday expenses and that investing is necessary for securing retirement income drive individuals to embrace risk, while financial institutions reap substantial profits. Hardin firmly argues that mitigating the detrimental effects of financial capitalism, such as perpetuating class and racial inequalities, necessitates challenging the narratives that normalize risk as an inherent aspect of financial capitalism and society as a whole.

By delving into the complexities of arbitrage, Hardin sheds light on the intricate relationships between risk, financial institutions, and societal dynamics. She challenges the notion that risk is an inherent characteristic of financial markets and emphasizes the need to examine the broader social and economic implications of risk-taking practices. Hardin's book offers valuable insights into the workings of financial capitalism and provides a thought-provoking examination of the potential risks and benefits associated with risk management strategies. It serves as a crucial resource for policymakers, investors, and individuals seeking to navigate the complex terrain of financial markets and promote more equitable and sustainable economic systems.

Weight: 274g
Dimension: 153 x 230 x 16 (mm)
ISBN-13: 9781478014294