When Genius Failed: The Rise and Fall of Long-Term Capital Management (Google eBook)

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Random House Publishing Group, Jan 18, 2001 - Business & Economics - 264 pages
208 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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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

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

User Review  - Susannah Birch - Goodreads

I picked this book up in a $2 shop with a stack of other cheap ones. I have no interest in the stock market and I hate mathematics (I'm a writer for a reason!) However I thoroughly enjoyed the plot line of this book as well as learning more about the stock market. Read full review

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

User Review  - Natasha - Goodreads

Although this novel was at times quite dense, it provided very fascinating insights into the world of Wall Street. It was not just a world of numbers, but rather competing unchecked egos, high-stakes ... Read full review


Authors Note and Acknowledgments
Dear Investors
A Nobel Prize
The Human Factor
Afterword 2010
About the Author

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About the author (2001)

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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