When Genius Failed: The Rise and Fall of Long-Term Capital Management
With a new Afterword addressing today's financial crisis
A 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.
What people are saying - Write a review
Review: When Genius Failed: The Rise and Fall of Long-Term Capital ManagementUser Review - Robert - Goodreads
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 ... Read full review
Review: When Genius Failed: The Rise and Fall of Long-Term Capital ManagementUser Review - Nablamax - Goodreads
Fairly decent book. Little bit zealot on the "leverage is evil", LBO's were great to discipline companies too. Read full review
A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial ...
No preview available - 2007