When Genius Failed - Roger Lowenstein

Another book in my 'Trading horror stories' series. Recommended by my boss, this is a rather more journalistic (it even has references!) approach, here applied to the Long Term Capital Management disaster, where a bunch of rather clever arbitrageurs made an insane amount of money, then blew it all when they discovered that being highly leveraged and illiquid is actually really bad.

Posted 2004-12-28.