When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein

Random House, September 2000, 264 pages The classic image of a breakwater pass market trader is any(prenominal)one, usually a man, on the profession floor, shouting buy and sell orders, clutching a sheaf of traffic tickets. Floor traders must have an instinctive thumb for duty and direct by on their quick wits. They argon right away a vanishing species and willing soon give Mark Twains riverboat captains in extinction and myth. Modern trading is immediately almost entirely paperless and takes dapple in the cyberspace of electronic computers and computer networks. The instincts of market traders are beingness augmented and in some cases replaced by mathematical determine models. Traders are being pinched from schools like MIT, rather than the city College of New York. A skin senses for market dynamics and trends will always be important, exclusively along side these skills forward-looking traders have a leave out of statistics and probability theory. John Me riwether gained a streak of fame in Michael Lewis watchword Liars Poker, where he is described by Lewis as a Salomon Brothers Uber-trader and compass of Liars Poker. Meriwether was one of the top hold fast traders at Salomon Brothers and later became top of the fixed income securities department (which was responsible for owe security and bond trading). Meriwether was one of the first people on Wall figure to recruit mathematicians and physicists from schools like MIT and Cal.

Tech and make for them into bond traders. Meriwether was a harbinger of the conjunction between Wall Street and the bead Tower. Perhaps to the horror of the old Wall Street operators, donnish financial the ory provided a framework that allowed market! s to live more than effectively. One example of this is the Black-Scholes model for pricing variant options. adoption of the Black-Scholes model has become so wide riddle that wind vane sites like Yahoo and E*trade that... If you fate to get a full essay, order it on our website: OrderEssay.net

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