“When Genius Failed”, Lowenstein. This is about the 1998 Long-Term Capital Management (LTCM) implosion and how it was a precursor, albeit on a much smaller scale, to what is happening now in the credit markets.
LTCM had two Nobel Prize Laureates on their staff, and also counted some of Wall Street’s “Best and Brightest” among their members.
Great read, if for no other reason than to watch what happens when you think you’re too smart too fail. Also, the almost religious reliance on their risk management models is eerily similar to that shown by today’s Wall Street banks.
