Fool's Gold: How Unrestrained Greed Corrupted A Dream, Shattered Global Markets And Unleashed A Catastrophe

Gillian Tett


In Circulation

In the mid 1990s, at a vast hotel complex on a private Florida beach, dozens of bankers from JP Morgan gathered for what was to become a legendary off-site meeting. It was a wild weekend. But among the drinking, nightclubbing and fist-fights lay a more serious purpose - to assess the possibility of building a business around the new-fangled concepts of credit derivatives.

The group at the heart of this revolution was an intense team, made up of individuals with a supreme sense of loyalty to each other and to the bank - for years, nothing could break them apart. But when, finally, the team dispersed, the innovations spread far beyond their original intentions, producing perversions in the mortgage market that ultimately culminated in disaster. 

Part real-life thriller, part investigation and exposé, this searing narrative takes us deep inside the shadowy world of complex finance

 A PERFECT STORM for the credit crunch

What will you learn from this book

  1. Financial Innovation and Complexity: Tett likely explores how complex financial instruments, particularly mortgage-backed securities and derivatives, contributed to the crisis. These products were often poorly understood and carried significant risks.

  2. Housing Market Bubble: The book probably discusses the housing market bubble in the United States and how the proliferation of subprime mortgages and lax lending standards fueled the bubble's growth.

  3. Role of Institutions: Tett may analyze the role of financial institutions, rating agencies, and regulators in perpetuating the crisis. This could include discussions on inadequate risk management and oversight.

  4. Interconnectedness of Global Markets: The book might highlight how the crisis spread globally due to the interconnectedness of financial markets, impacting economies beyond the United States.

  5. Leverage and Risk-Taking: The culture of excessive leverage and risk-taking in the financial industry could be a recurring theme. This culture encouraged short-term gains at the expense of long-term stability.

  6. Impact on Main Street: Tett may discuss how the financial crisis affected everyday individuals, including job losses, home foreclosures, and the broader economic downturn.

  7. Government Response: The book might cover the government's response to the crisis, including interventions such as bailouts, stimulus packages, and regulatory reforms like the Dodd-Frank Act.

  8. Lessons Learned: Tett likely explores the lessons learned from the crisis, emphasizing the need for stronger regulations, risk management practices, and increased transparency in financial markets.

  9. Behavioral and Psychological Factors: The book might touch upon behavioral economics, discussing psychological factors that contributed to the crisis, such as herd mentality and overconfidence.

  10. Rebuilding Trust: Rebuilding trust in the financial system and restoring confidence among investors and the public might be discussed as essential for preventing future crises.

Language English
ISBN-10 1408701677
ISBN-13 9781408701676
No of pages 352
Font Size Medium
Book Publisher Little Brown
Published Date 05 Nov 2009

About Author

Author : Gillian Tett

1 Books

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