Book Summary
"When Genius Failed" is a book that tells the story of the collapse of Long-Term Capital Management (LTCM) in 1998.
Written by Roger Lowenstein, it provides a detailed account of the events that led to the hedge fund's downfall.
The book describes how LTCM, led by a group of financial experts, used complex mathematical models to make highly leveraged bets on the financial markets.
Despite their brilliance, the team at LTCM underestimated the risk of their investments and suffered massive losses during the Russian financial crisis of 1998.
The book highlights the dangers of relying too heavily on mathematical models and not fully understanding the risks involved in investing.
It also sheds light on the interconnectedness of financial institutions and the potential for systemic risk in the financial system.
"When Genius Failed" has been praised for its engaging narrative style and its ability to make complex financial concepts accessible to a general audience.
The book provides a cautionary tale for investors and regulators alike, emphasizing the importance of transparency and risk management in the financial industry.
It remains a relevant and thought-provoking read for anyone interested in finance, economics, or the workings of the financial system.
"When Genius Failed" was a bestseller and was widely recognized as one of the best business books of its time.