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 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.
Working mom (HRMgr/healthcare) in western Michigan. INTJ. Red Vines. Disneyfreak.
What to make of the fact that the dress rehearsal for the sub-prime bailout occurred in September 1998? What did we know then that we did not learn from? How can we prevent this from recurring or are we simply doomed to continue this? So many questions ...
Roger Lowenstein narrates his own book. I'm from the midwest and so, to me, he sounds distinctly northeastern. It takes a bit of getting used to, but after a couple of chapters, I was fine.
The story was a bit overwrought, especially in the middle. But I was very engaged in the early beginnings of the creation of something so spectacularly successful as Long Term Capital Management, the incredibly quick demise, and whether we learned anything from the whole thing.
Lowenstein does a fine job describing some fairly complex concepts such as bond arbitrage, volatility, and leverage. It helped me grasp many of the underpinnings. The characters were incredibly interesting to me - each genius and mad in their own individual way. They seemed to simultaneously bring out the best and the worst in each other.
This book is especially interesting in light of the subprime and global financial crises of 2008-2010. I can't help feeling as though we failed to heed a lesson.
I would only recommend this too people who are interested in the details of what happens on Wall Street. The reading of this book was well done, and the story was fine, but it was too narrowly focused for me to enjoy as much as I have other books about Wall Street.
Learning about arbitrage, leverage, and credit during market turmoil.
When LTCM had made obscene returns and started investing in areas they had no business touching.
No, I had to make myself finish it.
Do you read the book before you dislike my reviews?
It's very hard to write a review on financial books because it is very technical, factual, and to the point. In many ways, it is a dull read, as if you are in school, cracking open an algebra book, trying to solve an equation.
I like these kinds of reads because I enjoy listening what went on in Wall Street and beyond. There are times where you need to take a break from fiction and get something that makes sense with numbers.
This title meets my number fetish and put this book on top of my list for economy status at the time.
The author's voice is a bit desirable because instead of a steady voice, you feel like you are going on a roller coaster ride, where the pitch of the reader's voice goes up and down, as if you are driving uphill and then all of a sudden, you are speeding down the hill and then up again.
Maybe the publisher couldn't afford a professional narrator.
They should re-record this title with an new reader, but if you are thinking about buying this book, you are not interested in the storytelling.
What a mess!
John William Meriwether was my favorite character because his portrayl within the book as the most sensitive and rife with Greek tragedy. (For those options enthusiasts reading this, the pun was absolutely intended!)
The reading was crisp on the ear and very easy to listen to.
Um, it's about bankers. I cheered when they went down in flames!
Superb story telling. If you are at all interested in the saga of Long-Term Capital Management, download this and give it a listen. I loved it!
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