Meriwether & Co. truly believed that their finely tuned computer models had tamed the genie of risk, and would allow them to bet on the future with near mathematical certainty. Thanks to their cast - which included a pair of future Nobel Prize winners - investors believed them. Four years later, when a default in Russia set off a global storm that Long-Term's models hadn't anticipated, its supposedly safe portfolios imploded. In five weeks, the professors went from mega-rich geniuses to discredited failures. The firm's staggering $100 billion balance sheet threatened to drag down markets around the world. At the eleventh hour, fearing that the financial system of the world was in peril, the Federal Reserve hastily summoned Wall Street's leading banks to underwrite a bailout.
Best selling author Roger Lowenstein captures Long-Term's roller-coaster ride in gripping detail. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein crafts a story that reads like a first-rate thriller from beginning to end. He explains not just how the fund made and lost its money, but what it was about the personalities of Long-Term's partners, the arrogance of their mathematical certainties, and the late-90s culture of Wall Street that made it all possible.
Executive Producer: Dan Zitt
Producer: Paul Ruben
Original cover design Kapo Ng
©2000 by Roger Lowenstein
(P)2001 Random House, Inc.
"This book is story-telling journalism at its best." (The Economist)
"Lowenstein [is] one of the best financial journalists there is¿" (New York Times Book Review)
The story of long-term capital management's rise and fall is full of extremely valuable lessons. The author does a great job without saying as much of outlining LTCM's arrogance, failure to recognize their own mistakes and failure to adapt after having experienced the catastrophic results of their investing models. Fast read and very informative.
The key lesson learned is that overconfidence and hubris will destroy a sound and potentially brilliant investment process. It's a good book for those who are seeking investment advice as being smart isn't the only thing you need to win in the game of investing.
An excellent book that details the origins, rise and the fall of Long Term Capital Management. Recommend this for those interested in an interesting financial history.
The voice is boring. The story is boring. It should have been so much better than it was. I couldn't get past 2 chapters. Maybe it was nothing I could relate to or understand. Maybe it was just a boring read. I will be returning this one.
This was a fun read and ranks highly on my investors writeup. I can forget easily how a credit cycle moves along and credit is extended so willingly and shocks can happen so quickly.
Literally anyone else. I'm sure there was some pull to read your own words as you saw fit, but his reading was monotonous and weird and took away from a great story.
The author narrates. He speaks in 5-6 word bits, breaking the text up needlessly. And he uses a tone of voice that makes it sound like he's reading a bedtime story to a 3-year-old. Extremely irritating!!! By the end of an hour I couldn't take it anymore.
An interesting slice of economics history...
I don't read this type of book very often.
Another reader... I guess.
Did not have one those moments...
worth a credit..
There are a few histories of Wall Street that really stand out. The others are mostly written by Michael Lewis. So that puts this book in rarified company.
The humanization of the two protagonists, John Meriwether and Larry Hillebrand.
The final defeat of Hillebrand, when he's forced to finally open his books for the world to see, was moving. He's not a likable character, but you really feel sympathy for him in that moment.
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