Fool’s Gold by Gillian Tett – From award-winning Financial Times journalist Gillian Tett, who enraged Wall Street leaders with her news-breaking warnings of a. At some point during Gillian Tett’s absorbing year gallop across the The sub -title of Fool’s Gold panders to this, suggesting “unrestrained. Gillian Tett, who oversees global market coverage for The Financial Times, offers some of each. In “Fool’s Gold,” she describes how a small.

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I was under the impression that common-sense financial management being as prepared to cover the worst possible at all times, so that you can then safely make investments or take risks with goold money that is left. Despite a couple gillia borderline hagiographical chapters in the middle of the book talking up some of the senior staff involved with J. This is a fantastic book about the creation of financial instruments that was misused, mainly due to greed, and resulted in the Global Financial Crisis of Will that now change?

She has an awareness that her reader may need help navigating the jargon fol the financial world, and so makes an effort to break down and explain the terms in a simplistic ggold.

The government the taxpayer had to step in massively. I could only afford to do a quick scan of the book as research for a school essay, but even so, I found this a deeply engaging journalistic account of the origins of the crisis. I guess to Hoye all women sound British? This resulted into more and more creative and synthetic structures.

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Amazon Second Chance Pass it on, trade it in, give it a second life. What eats at me is the naivete of so many people involved. A survey of this magnitude is no mean achievement, especially when condensed to less than ten pages. It was interesting to read this dry, financial reporter’s account after having read the Big Short.

Like Michael Lewis, She also explains that in order to understand the actions of an individual we have to look at the incentives that drive them. It is one filled with greed, arrogance and blind faith in the so-called “free market. The first third of the book, called “Innovation,” is literally the best possible primer you could read on derivatives and the shadow banking system that developed in their wake.


Reading this book, one gets the sense of a Dr. No trivia or quizzes yet. Price may vary by retailer. Morgan which was right there at the start of the process of financial innovation which later tipped into something uncontrollable. This is yet another book about the credit crunch and the Crash of ’08, but it’s one of the best.

They felt that CDOs were undeservedly being blamed; it wasn’t the instruments themselves that were at fault, but the people using and misuing them. But Tett is not just content with writing a narrative of events. The account of what happened and who the major players were are is clear, even if the full nature of the tools involved was a bit beyond me. They were fired by the fervour of scientists who thought they were splitting the atom or discovering DNA – with no notion that their innovation, in the hands of others, would run disastrously out of control.

Fool’s Gold

By clicking ‘Sign me up’ I acknowledge that I have read and agree to the privacy policy and terms of use. From a modern perspective this is a moment that changed the world of Finance. This lack of a holistic vision of finance had, Tett points out, terrible consequences, the most tragic of which have been the blows to families who had never heard of a CDO collateralised debt obligation or an SIV structured investment vehiclebut are now suffering the loss of savings, homes and jobs.

The original team watched in horror as twtt this unfolded, but retained a belief that the instruments themselves were a useful way to manage risk, even if their abuse led to a financial crisis. This book is notably lacking in hysterical jeremiads, whether against Richard Fuld, Henry Paulson, Barney Frank, Tim Geithner, and anyone else you would care to name. The panic that ensued caused several banks gillan fail or be forced into mergers or change into bank holding companies.

Trivia About Fool’s Gold. But when, finally, the team dispersed, the innovations spread far beyond their original intentions, producing perversions in the mortgage market that ultimately culminated in disaster. While I admit I am a bit behind on my current event reading this book was published inthe effect of the mortgage meltdown is still with us and we are being set up again for another, similar foil.

One thing I vool really like about Fool’s Gold was that it contained an Epilogue, a “what happened billian the book story ended” section. Frankenstein type scenario where some financial engineers with goo Excellent read.


Tett is the author of Saving the Sun: Foool you like to see more reviews about this item? Those same authorities, together with national governments, economists and politicians, are still tip-toeing around the problems and causes now. The fact that Tett flol able to reproduce such raw private communications is a tribute to her journalistic abilities’ Dominic Lawson, Sunday Times ‘Her blow-by-blow story is an impressive piece of detective work.

A group of derivatives traders at J.

I think some of these positions should no longer be political appointees to keep their independence and the ratings agencies should not be “for profit” companies. The previous derivatives team had been conservative, but Dimon, with his “fortress balance sheet” idea really drove home the possible dangers of credit derivatives.

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The other is that by choosing to tell the story solely from the vantage of JPM, Tett cuts the scope of the book drastically. Tett, a financial journalist, had completed a PhD in anthropology and used those skills to understand the ‘on the ground’ culture of the bankers and financiers in the derivatives market.

However, as the house mortgages increased, including the soaring of subprime loans, and the increase of the housing prices in US, the banks started to use credit derivatives.

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Yet what is also needed is a wider rethinking of the culture of finance. Good focus on the evolution of credit derivatives and how a small coterie of bankers at JP Morgan changed the world. It is interesting to note that they looked into the possibility of creating similar instruments backed by residential mortgages, but thought it too risky. But for an understanding of a couple of the ways in which the financial crisis got started, it’s a good start!

Fool’s Gold by Gillian Tett

The book is gripping. As the cruddy mortgages went bad, AIG began to take on water.

Topics Business and finance giolian The Observer. Fool’s Gold Trade Paperback I’ve done a fair amount of reading about the Panic ofand Gillian Tett’s “Fools Gold” explains the exotic investment instruments at the heart of the panic better than any other work I’ve read.