A Demon of Our Own Design. Richard Bookstaber. Wiley (). February A look at “the perils of financial innovation.” With its publication predating the. A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation [Richard Bookstaber] on kipentoriber.tk *FREE* shipping on. Download Pdf Demon of Our Own Design P: Markets, Hedge Funds, and the Perils of Financial Innovation Epub E-book full Why do markets.

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Inside markets, innovation, and risk Why do markets keep crashing and why are financial crisesgreater than ever before? As the risk manager to some of. I previously mentioned A Demon of Our Own Design in a linkfest a few will find after the jump: All of chapter one, in both text form and PDF. A product of the author's long experience at investment banks and hedge funds, this masterful book paints a picture of momentous financial events of the past.

And I try to have a mix of outlooks on hand at any time.

A Demon of Our Own Design

I like the book club idea. Both may be more pedagogical than people want — but are amazing, well told stories! Light and funny in a car crash kind of way.

Yes to bookclub. Where do I sign up? I concede that the actual concepts are top-notch but you can learn those concepts from others — Buffett, Klarman, Greenblatt, Pabrai, etc. And rival Oprah!

I think a book section is a great idea. If you can include the first chapter or first few pages of a new book it would allow me to figure out if if it is something that interests me and is written in a format that is easily digestible.

You know…chaos theory…where a gnat farts in Africa and causes a hurricane to flatten Florida. It does seems that in the current situation, risks were spread around quite nicely. When European and Chines banks are taking part of the hit from a real estate crisis isolated in the US, it looks like the theory worked.

However, the breadth of exposure caused markets to react together, undermining the ability to diversify. So, if risk is spread around, correlation occurs.

If risk is isolated, there can be independant performance. Written by a braniac with all the degrees from MIT and one of the guys who designed the derivatives systems now in place that collapsed, he blames himself and the complexities of the investment vehicles he designed.

All men were formerly hunter gatherers. This was refined over a few thousand years into the effort to bring home the biggest haul of bacon in order to screw not only the most women, but the best looking ones.

Life was good. The bigger the haul of bacon the better looking the babes at our beck and call. This is how it was.

This was how it should be. This is a primeval condition of man. Same can be said for all fortunes, great and small, all bridges tall and narrow, and all skyscrapers daring to be the highest and grandest of them all. We need to take risks. Many of the rest of us look down at the phony bungee jumpers who actually risk nothing and prove it to the world by allowing themselves to be dominated by ugly girlfriends or fat wives.

A Demon of Our Own Design

We hold Hollywood in contempt while idolizing football players, boxers, NASCAR drivers and others who engage in sports that can easily result in terrible and visible ends. We are the ones with the great looking mistresses we can trade in just before their warranties wear out while dangerously keeping our wives in the dark, an activity that is loaded with risk, and only risk.

There is nothing in the world as satisfying as having the specter of murder hanging over our copulations. Trust me, I know. One of my girlfriends once pulled a gun on me and the result was an instant erection; I just had to have her.

It was glorious. However, life dictates that there is always someone out there with a better looking mistress, a bigger house, more expensive cars, bigger yachts; a faster gun as it were.

We must have more. And more.

We need to act this out. We have a primal need to bring home the most bacon. The only thing stopping most of us is fear of losing, of being wounded, or of death; fears that shame us to our souls. That there have been horrendous losses only validates the need to take outrageous risks. Trust me. They almost never talk about their gains.

Why losses of course: If anyone should say they won fifteen big ones we think they are lying, demand that they prove it, and look at them like they had AIDS.

About the Author

Our markets have become unstable largely because people with lots of money are looking for the larger casino. You need to get that. Nobody ever believed that you could honestly get LTCM profits. All we morons can do is check the charts once we are in and have sell signals that will allow us to get out with minimal damage. Once the big institutions start to bail we have to be out instantly. Check the daily charts.

Demon of Our Own Design

There were sell signals for weeks before the stock collapsed including the penetration of the fifty day moving average. The download and hold while shutting your eyes method is for saps. You can always always get back in, something the gambler never considers.

Getting in requires only any orderly and rigorous method of checking out investments, something almost nobody wants to take the time to do. To sum it up: Only willing gamblers were in them.

I even was kinda dreaming about it as I woke up this morning, with a twist tho. My dream transformed the men to dog breeds. La pioggia secondo quanto sta scritto su Wikipedia la forma pi comune di precipitazione atmosferica e si forma quando gocce separate di acqua cadono al suolo dalle nuvole.

Oggi una parte della pioggia che cade dalle nuvole della p.

The opening paragraph just reached out and grabbed me: He also accepts a lot of responsibility for many costly errors he himself made. Overall, a fun, very informative read. Enjoy chapter one. Spread the wealth. What's been said: Discussions found on the web: Interesting reading, Barry.

If anything, though, it seems possible to have enabled the last leg up for this aging Bull… I would never be so foolish to make short-term market predictions but it seems the current financial crisis has become a distraction that has completely consumed the attention of investors.

I think creating a financial salon is a fine idea.

If anything, though, it seems possible to have enabled the last leg up for this aging Bull… This sounds like a Greenspan statement. The first person who votes for anything by Suze ormand gets black-listed…. Ciao MS. Are we starting with this book? Book club would be fun. Great reading and great posts. Count me in on the reading. Love the idea! Thank you. I only read the title, the excerpt, and your blurb. We did not create a demon. We created a golem. You wanna be responsible for that?

Traders, Guns and Money: We are all screwed! As a leading Wall Street risk manager, Rick Bookstaber has seen the ghost inside the machine and vividly shows us a world that is even riskier than we think.

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Why not share! An annual anal Embed Size px.

Start on. Shelves: accidents , sociology-anthropology , modern-history , the-economy , nonfiction , organizations , social-theory Here is where the inadequacies of the rating system comes into play. In terms of writing, I would give this book 2. While the prose itself is acceptable not great, but workmanlike , the book has serious problems with its structure. It is definitely NOT a book for a novice in this field. The problem is four fold.

First, the book is not written for the layman. I was able to absorb it fairly quickly because I already have extensive knowledge of the topic.

A novice would find him or herself buried under a lot of jargon and all too briefly explained financial history. Second, the book really needs a stronger narrative core at its center. It tends to drift from topic to topic and it doubles back on it self chronologically several times.Community Reviews. It is definitely NOT a book for a novice in this field.

Hedge Fund Existential. With greater stability in economic productivity and earnings, and with greater and broader access to borrowing—think of your home equity line of credit—the variability of consumption year by year is less than a third of what it was in the middle of the twentieth century.

I went through such treatment for years in graduate school and I am happy to 'pay it forward'. Interesting that the author tied LTCM fate to another book called normal accidents.