This text tells the story of the collapse of LTCM (Long-Term Capital Management). It addresses key questions of the role of science in finance, and where this development is likely to lead the world financial markets.
Charts the story of financial innovation how investment banks invented financial products, how investors across the world were wooed into buying them, how regulators were seduced by the political rewards of easy credit, and how speculators made a killing from the near-meltdown of the financial system.