Panic - The Story Of Modern Financial Insanity

Michael Lewis

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From Black Monday to the Asian financial crisis, from the internet bubble to mortgage meltdown, our lives are ruled by crazy cycles of euphoria and hysteria that manage to grip the world but are all-too-soon forgotten.

In this unique collection of articles Michael Lewis - ex-trader and bestselling chronicler of greed and frenzy in the markets - casts a sceptical eye back over the most panicked-about panics of recent decades. He tells a story of boom and bust, deranged greed, outsized egos and over-inflated salaries, where the only thing that can ever be predicted is our constant inability to predict anything.

Using contemporary accounts from commentators such as Joseph Stiglitz, Jeffrey Sachs and Paul Krugman, plus many of his own best writings, Lewis conveys the mood before each catastrophe, what it was like in the heat of the moment, how, afterwards, we tried to explain away the chaos - and then failed to learn from it before the whole process started all over again.

What will you learn from this book

  1. Cycles of Market Panic: Discusses recurring cycles of market panic and irrational behavior that have characterized financial markets throughout history.

  2. Herd Mentality: Explores the psychology of investors during panics, emphasizing how fear and herd mentality can drive irrational decision-making and market volatility.

  3. Financial Innovation and Risk: Examines the role of financial innovation in exacerbating crises, sometimes leading to unforeseen risks and systemic vulnerabilities.

  4. Regulatory Response: Analyzes the responses of regulators and policymakers to financial panics, evaluating the effectiveness of regulatory measures in stabilizing markets.

  5. Impact on Economy: Explores the broader economic impact of financial panics, including their effects on GDP, employment, consumer confidence, and global markets.

  6. Role of Media: Discusses the influence of media coverage and sensationalism on exacerbating or calming market panics.

  7. Lessons from History: Draws lessons from historical financial crises and panics, highlighting patterns and warning signs that can help anticipate future market turmoil.

  8. Investor Behavior: Studies investor behavior during times of panic, focusing on how emotions and biases can lead to irrational investment decisions.

  9. Systemic Risk: Examines systemic risks within financial systems, such as interconnectedness, leverage, and complex financial instruments that can contribute to market instability.

  10. Resilience and Recovery: Explores the resilience of financial markets and economies in recovering from panics, showcasing the mechanisms that help restore stability.

Language English
ISBN-10 9780141042312
No of pages 389
Font Size Medium
Book Publisher Penguin Books
Published Date 04 Dec 2008

About Author

Author : Michael Lewis

13 Books

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