When Genius Failed: The Rise and Fall of Long-Term Capital Management

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Random House LLC, 2000 - Business & Economics - 264 pages
259 Reviews
With a new Afterword addressing today's financial crisis


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.

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When Genius Failed gives us much needed insight. - Goodreads
It is extremely well-researched and well-written. - Goodreads
So yes, good story, good explanations, good book. - Goodreads
Gleaned insights into a world unknown previously. - Goodreads
Lowenstein is my favorite business writer. - Goodreads
I am writing this in 2013. - Goodreads

Review: When Genius Failed: The Rise and Fall of Long-Term Capital Management

User 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 Management

User 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

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About the author (2000)

Roger Lowenstein, author of the bestselling Buffett: The Making of an American Capitalist, reported for The Wall Street Journal for more than a decade, and wrote the Journal's stock market column "Heard on the Street" from 1989 to 1991 and the "Intrinsic Value" column from 1995 to 1997. He now writes a column in Smart Money magazine, and has written for The New York Times and The New Republic, among other publications. He has three children and lives in Westfield, New Jersey.

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