Present Based On Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
| Title | : | When Genius Failed: The Rise and Fall of Long-Term Capital Management |
| Author | : | Roger Lowenstein |
| Book Format | : | Paperback |
| Book Edition | : | Deluxe Edition |
| Pages | : | Pages: 264 pages |
| Published | : | October 9th 2001 by Random House Trade Paperbacks (first published January 1st 2000) |
| Categories | : | Economics. Finance. Business. Nonfiction. History |
Roger Lowenstein
Paperback | Pages: 264 pages Rating: 4.19 | 22157 Users | 622 Reviews
Narrative In Favor Of Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
With a new Afterword addressing today’s financial crisisA BUSINESS WEEK BEST BOOK OF THE YEAR
In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their fall.
When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself. The dramatic story of Long-Term’s fall is now a chilling harbinger of the crisis that would strike all of Wall Street, from Lehman Brothers to AIG, a decade later. In his new Afterword, Lowenstein shows that LTCM’s implosion should be seen not as a one-off drama but as a template for market meltdowns in an age of instability—and as a wake-up call that Wall Street and government alike tragically ignored.
Be Specific About Books Concering When Genius Failed: The Rise and Fall of Long-Term Capital Management
| Original Title: | When Genius Failed: The Rise and Fall of Long-Term Capital Management |
| ISBN: | 0375758259 (ISBN13: 9780375758256) |
| Edition Language: | English |
Rating Based On Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
Ratings: 4.19 From 22157 Users | 622 ReviewsPiece Based On Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
This is a great book detailing one of the biggest debacles in financial history, LTCM fall. I had the case study on this before, but background and involvement of pretty much investment bank gets clear from this book. Some of the details about how the fund was floated are a tad boring. Overall it unfolds like a crime novel and keeps oen interested. As someone in financial services industry, I would recommend it to people interested in the field. A lot of current risk management practices stemImagine losing US$5 billion in 5 weeks. This is the real-life account of how Long Term Capital Management, run by a bunch of the (supposedly) smartest guys in the world, including two Nobel laureates, went bust. It is a tale of recklessness and arrogance and most of all, lack of experience in real markets. It's also a good reminder to turn away and run whenever an academic tries to lecture you on how to trade the markets. The amazing thing is, some of these guys managed to "return from the dead"
Thrilling! Hard to put down. It is a sober reminder that not even the giants of modern finance, the ones whose equations we encounter in textbooks, are infallible. It shows how difficult it is to measure and quantify risk. For a long time, volatility was a proxy for risk. Long term's typical strategies hinged on how markets became efficient over time which in turn led to lower volatilities and shorter spreads between treasuries and other riskier bonds. So, Long Term was typically short
This book was rated a four... and then came the epilogue. Roger Lowenstein did a great job summarizing what was a monumental collapse by Long Term Capital Management, and the epilogue really drove the point home. It makes me wonder why, having graduated college just last May, we finance majors are taught the efficient market theory over and over again, but we never hear about behavioral finance until we read books like this. How many times do we need to be shown that markets simply are not
Detailed, eye-opening revelations!This book covers the spectacular rise and the stunning fall of LTCM, the hedge fund set up by the whos-who of the industry including Nobel Laureates. They earned more than 300% profits over 4 years to grow by $3.5+ billions and lost it all in nearly 2 months! The assumptions in models, the disproportionate leverage, their lack of attention to intuitive reason, and their superlative egos which paved way for their failure are very hard to miss. Makes for a great
There's a graph at the very beginning of this book that's got to be one of the funniest displays of financial information I've seen in a while. It's very simple - a line showing the notional value of a dollar invested in Long-Term Capital Management over the firm's all-too-brief lifespan. The line climbs slowly from its beginning in March 1994, picks up speed through the intervening years, peaks at a bit over $4 in April 1998, and then drops off a cliff Wile E. Coyote-style to about 25 cents
I started reading this book in summer of 2007 and then picked it up again this fall. In 1997 I was blithely running around France checking out art while this country's financial system nearly came to a halt, the Fed had to step in and major banks suffered huge losses as a result of hubris and lack of understanding the true risks they were taking. Lowenstein brilliantly takes us behind this scenes to unravel how real geniuses-- Long-Term's marketing strategy was touting the number of Nobel
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