A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation
| Author | : | |
| Rating | : | 4.14 (676 Votes) |
| Asin | : | 0470393750 |
| Format Type | : | paperback |
| Number of Pages | : | 304 Pages |
| Publish Date | : | 2014-05-20 |
| Language | : | English |
DESCRIPTION:
In the process of showing what we have done, Bookstaber shines a light on what the future holds for a world where capital and power have moved from Wall Street institutions to elite and highly leveraged hedge funds.. The very things done to make markets safer, have, in fact, created a world that is far more dangerous. A Demon of Our Own Design tells the story of man’s attempt to manage market risk and what it has wrought. Inside markets, innovation, and riskWhy do markets keep crashing and why are financial crises greater than ever before? As the risk manager to some of the leading firms on Wall Street–from Morgan Stanley to Salomon and Citigroup–and a member of some of the
Bookstaber is one of Wall Street's 'rocket scientists'--mathematicians lured from academia to help create both complex financial instruments and new computer models for making investing decisions. It is a clear exposition of what the combination of derivatives, leverage and hedge funds can do to the markets.In short, A Demon of our Own Design is a guide to the dangerous financial markets we have created for ourselves by the clever innovations of structured finance, derivatives, credit default swaps and other newfangled products that are a mystery to the ordinary investor and even plenty of the so
Santiago Herrera said Undoubtedly, one of the best books in my financial markets collection. Loved this book. I cannot explain how much I've learned and how much I have highlighted and commented on this book. The main topic of the book is complexity (as bred by a constant urge to innovate in financial products) and how it related to financial crises. The author asks a fundamental question that not many have asked (unless asked triv. The man that got it right Steve Klein Richard Bookstaber published this book in 2007 indicated he wrote it well over a year before the crisis. The book articulates the primary concerns of the financial innovation unleashed in the last 30 years on the system that are the roots of the 2008 meltdown. The combination of excessive leverage and "tightly coupled systems" like the inte. Abacus said Great book just released before the financial crisis. Reading this book five years after its release, one has to admire how prescient the author was. He gives you a brilliant insider account of all the ways our financial system has faltered and will falter. Less than a year after the book release the financial system crashed for reasons detailed in the book including leverage, liquidity, regul