From the list on financial crises.
Who am I?
I am Kevin Dowd, a professor of finance and economics at Durham University. I co-authored Alchemists of Loss with Bear’s Lair journalist and ex-merchant banker Martin Hutchinson. Our book discusses the cause of the Global Financial Crisis. Looking over this and many other historical booms and busts, the point that jumps out at me is that the lesson man draws from history is that man learns nothing from it. For it is the doom of men (and women) that we forget.
Kevin's book list on financial crises
Discover why each book is one of Kevin's favorite books.
Why did Kevin love this book?
How financial rocket scientists were bested by financial markets. When Genius Failed is the rise and fall of the giant hedge fund Long-Term Capital Management. Its principals involved the best of Wall Street and two of the inventors of the Nobel-winning option price formula. Famed for its expertise in financial modelling, the firm leveraged its bets to make large returns but only for a while. It became unstuck when Russia defaulted on its debts in the summer of 1998 and was only saved from failure by a Fed bailout, which thereby set a bad precedent for the future: favoured Wall Street firms that take excessive risks could expect to be bailed out at other people’s expense. The LTCM fiasco shows the limits of academic modelling of financial markets, not least because even if the academic modelling is initially correct, it fails to account for the ways in which markets adapt…
When Genius Failed
Why should I read it?
2 authors picked When Genius Failed as one of their favorite books, and they share why you should read it.
What is this book about?
Picking up where Liar's Poker left off (literally, in the bond dealer's desks of Salomon Brothers) the story of Long-Term Capital Management is of a group of elite investors who believed they could beat the market and, like alchemists, create limitless wealth for themselves and their partners.
Founded by John Meriweather, a notoriously confident bond dealer, along with two Nobel prize winners and a floor of Wall Street's brightest and best, Long-Term Captial Management was from the beginning hailed as a new gold standard in investing. It was to be the hedge fund to end all other hedge funds: a…
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