One of my latest read is INFECTIOUS GREED. I have tried to review the book that was focused on the prediction sub prime crisis and many more greed’s that lead to fiasco of the financial markets.
Infectious greed consists of grear literature on the financial engennering, financial innovation focused on structural finance and ofcourse the misuse of the derivatives over the time by the street smart bankers. The Book insist on how the Financial market was polluted by the various exotic instruments, which where introduced with the hope of making market efficient. The concept of efficient market was also challenged in the 1990’s and even in the previous market disasters.
The Book is a great read focusing on the traders like Andy Krieger, legends like John Meriwether and Paul Mozer Krieger, high profile collpases such as Barings bank (Nick Leeson) and LTCM Long term Capital Management . The book documents how each level of financial risk, loss of control and complexity obscured the sickness of companies in question and pushed individuals to ever more ingenious deceptions.
Mr Partony did offers a clear vision of how the financial market reached at epidemic stage and how the control could be regained before furher damge is done. Unfortunately the book was published before the SUBPRIME MESS which has changed the whole scenario of the financial market and the risk management control of the financial institutions.