The Crisis of Crowding

Beschreibung

"One of the lessons from the crisis, rarely discussed, are the problems caused by a crowded trading place. Chincarini takes the reader down a path not looked at by many analysts. An excellent read." -JIMMY CAYNE, former CEO and Chairman of the Board of Bear Stearns "The Crisis of Crowding is an excellent account of the financial crisis of 2008. This book has everything: an analysis of the trades, interviews with key players, and, most importantly, a simple, entertaining explanation of how we got into this mess. It stretches from the LTCM crisis in 1998 to the Greek crisis of 2012. Anyone who wants to know how our financial system works and how we can improve it should read this book." -FRANK FABOZZI, Professor at EDHEC Business School and former Professor at the Yale School of Management "Dr. Chincarini gives an engaging description of the various crises over the last decade and how they are connected. It's as if Chincarini were in the trading room taking notes as the crisis unfolded." -KEN KRONER, Chief Investment Officer and head of the firm's scientific active equity business, BlackRock "Do we need yet another book on the financial crisis? Yes, we do. Some books are fun to read, but leave you confused about what the actors actually did. Others give you a great deal of technical information, but can be a hard slog. This book by Ludwig Chincarini fills the middle. It is fun to read, and it tells you exactly who did what and how. Read, enjoy, and learn." -OLIVIER BLANCHARD, Chief Economist at the IMF "Chincarini's book, which combines a narrative style with an overview of economic fundamentals, should be on the reading list of anyone interested in the roots of our financial meltdown." -AUSTAN GOOLSBEE, former Chairman of the Council of Economic Advisors to the President, Professor of Economics, University of Chicago "Chincarini looks at the financial crises of the last fifteen years-starting with a comprehensive analysis of the LTCM crisis in 1998 and ending with the Euro-debt crisis of 2012-and argues convincingly that the central risk in these crises was accentuated from within the financial system rather than from external economic forces (it includes the best analysis I have read on the LTCM crisis). This bold new theory has important implications for both industry practices as well as for new regulations. This book should be required reading for anyone who wants to understand and help prevent future financial crises." -ERIC ROSENFELD, cofounder of Long-Term Capital Management and JWMP
A rare analytical look at the financial crisis using simple analysis The economic crisis that began in 2008 revealed the numerous problems in our financial system, from the way mortgage loans were produced to the way Wall Street banks leveraged themselves. Curiously enough, however, most of the reasons for the banking collapse are very similar to the reasons that Long-Term Capital Management (LTCM), the largest hedge fund to date, collapsed in 1998. The Crisis of Crowding looks at LTCM in greater detail, with new information, for a more accurate perspective, examining how the subsequent hedge funds started by Meriwether and former partners were destroyed again by the lapse of judgement in allowing Lehman Brothers to fail. Covering the lessons that were ignored during LTCM's collapse but eventually connected to the financial crisis of 2008, the book presents a series of lessons for hedge funds and financial markets, including touching upon the circle of greed from homeowners to real estate agents to politicians to Wall Street. * Guides the reader through the real story of Long-Term Capital Management with accurate descriptions, previously unpublished data, and interviews * Describes the lessons that hedge funds, as well as the market, should have learned from LTCM's collapse * Explores how the financial crisis and LTCM are a global phenomena rooted in failures to account for risk in crowded spaces with leverage * Explains why quantitative finance is essential for every financial institution from risk management to valuation modeling to algorithmic trading * Is filled with simple quantitative analysis about the financial crisis, from the Quant Crisis of 2007 to the failure of Lehman Brothers to the Flash Crash of 2010 A unique blend of storytelling and sound quantitative analysis, The Crisis of Crowding is one of the first books to offer an analytical look at the financial crisis rather than just an account of what happened. Also included are a layman's guide to the Dodd-Frank rules and what it means for the future, as well as an evaluation of the Fed's reaction to the crisis, QE1, QE2, and QE3.

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Ludwig B. Chincarini

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Börsenhandel Finance & Investments Finanz- u. Anlagewesen Trading

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