Description

With a new Afterword handling today’s financial crisisA BUSINESS WEEK BEST BOOK OF THE YEARIn the gripping roller is captured by this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein -coaster journey of Long-Term Capital Management. Drawing on confidential internal memos and interviews with a large number of key players, Lowenstein explains not only how the account created and lost its cash but additionally how the people of Extended-Term’s companions, the conceit of the statistical certainties, and the tradition of Wall Street itself led to both their increase and their drop. When it was started in 1993, long term was praised whilst the most remarkable hedge-fund ever. But after four decades where the company stunned Wall Street like a $100 million money-making juggernaut, it abruptly experienced disastrous failures that endangered not just the largest banks on Wall Street but the balance of the economic climate itself.