Define Books Supposing 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 |
Roger Lowenstein
Paperback | Pages: 264 pages Rating: 4.19 | 22157 Users | 622 Reviews
Commentary During 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 Of 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 | : | Special 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 |
Rating Of Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
Ratings: 4.19 From 22157 Users | 622 ReviewsWrite Up Of Books When Genius Failed: The Rise and Fall of Long-Term Capital Management
As a student of the efficient market idea I has always wondered what these guys were up to in more detail even after seeing the Nova program about the meltdown of Long Term Capital Management in 1998. This is an excellent book that explains as well as can be in a general work of literature less than 300 pages. There are several lessons here, that apparently will not be learned.Mathematical models are based on very good math with very many assumptions required to make the computations workable.(3.5) Eerily similar to a crisis almost exactly 10 years laterAn interesting, well-told if brief account of the rise and fall of Long-Term Capital Management (you remember that one, don't you?). When things get heated it was along the lines of Sorkin's Too Big to Fail, but otherwise a decent treatment of the significant events in the life and death of LTCM.Don't have too much more to share other than how prescient the following quotation (the book was written in 2000) was (or, perhaps how Wall
Everyone has their own opinion on what should be under compulsory literature at school. Here's mine: finance students should all read When Genius Failed. I was taught in university about the Bell curve, Black-Scholes option pricing formula, and all other various ways on how to assess risk and return. It is human nature to seek certainty, or the ability to assess probabilities. In financial markets this has been so for decades, but we do not seem to be any closer to the answer today than we were
This books gets three stars because it is a serviceable summary of its topic but is in now way outstanding. If you like finance, specifically statistical modeling and hedging strategies, you will find this tale of Nobel Prize hubris gone wrong because "muh models" didn't predict multiple standard deviation events intriguing. If you like reading about bad actors using arms of the federal government to engineer golden parachutes for them, you'll REALLY like this book.What is tough about this book
NOTE: this "review" is less about what I thought of the book, and more about what the book itself is about. So - spoiler alert?It's All About the FundAs the title suggests, "When Genius Fails" is about the "Rise and Fall of Long-Term Capital Management." Don't expect to learn why the economy itself went to shit, causing LTCM to lose ungodly sums of money. The main character of this tale is the fund itself, and Lowenstein does a fine job of documenting its meteoric rise and catastrophic fall.LTCM
Roger Lowenstein's book is a captivating look at what happens when even brilliant people rely on models and ignore the human element in investing. Their models did not take into consideration that when people are motivated by fear and greed, they are capable of extreme behavior. And as John Maynard Keynes is quoted as saying in the book, "Markets can remain irrational longer than you can remain solvent." LTCM discovered the truth of that statement too late.LTCM earned great returns in the early
Less a Science than Blind FaithIn 1999, the year before this book was published, my brother and I published a similar book, The Internet Bubble (HarperCollins). It was a Business Week bestseller for six months.But that financial bubble and the crisis that followed was certainly not on the level of LTCM.When our book was in the publishing pipeline word got back to me from an editor at Fortune magazine that the author of this book had started a book about the tech bubble, but changed course when
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