Fools Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catsatrophe.
By Gillian Tett and available on Kindle books.
Spell-binding read - an insiders look at the Derivatives markets.
For some time I've wanted to understand Derivatives and here we have a book which attempts to explain them as well as portraying their devastating impact on the global financial markets.
Tbh I'm still somewhat baffled by the Derivatives market - partly because I don't have a brain the size of a planet and partly because they are so arcane. Although I don't feel too bad about this as many senior bankers and even the traders who sold the products, and definitely many purchasers, didn't understand them either. This was especially the case when the computer models that formulated the risk profiles of Derivatives became so outre that they defied mortal comprehension.
Favourite quote: " (Derivatives are) ...financial hydrogen bombs, built on personal computers by twenty-six-year-olds with MBA's".
Worth a read to gain an insight into greed and the exploitation of loopholes and the ultimate collapse of a multi-trillion dollar business.