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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Bright people who not only behaved irresponsibly, but laughed at the misfortunes and losses of tet. I’m also disgusted by the levels of profit that are considered small and insufficient and reason to pursue unreasonable risk when they’re so huge. She also took a tiny device into the maternity ward to pass the time tracking share prices – doesn’t everyone?

It is In Teht GoldGillian Tett, a reporter for the Financial Times, tells the story of how esoteric credit derivatives were developed and championed by a small group of independent thinkers at J. Books by Gillian Tett. It gilllian not a pretty story.

Morgan was quite careful with these derivatives. I do agree with Tett’s conclusion that derivatives themselves aren’t the problem anymore than guns kill people.

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Would you like to see more reviews about this item? Many assumptions about the western financial system have collapsed since the fall of Lehman Brothers. View all 3 comments.

They had parties, we got the hangover

When the holders of sub prime debt could not reimburse their loan anymore, the CDO market simply imploded. That is a concept centered on wider social relations, which financiers forget at their peril.


Tett’s book gives the lie to the comforting notion that the crisis could not have been foreseen. Free Press April Length: Abacus; Digital original edition 6 May Language: Derivatives traders at other firms began assembling securities backed by subprime mortgages, trying to put together instruments that would be glilian risky enough to obtain returns but safe enough to obtain AAA ratings.

Fool’s Gold by Gillian Tett

Special offers and product promotions Also check our best rated Biography reviews. Morgan and How Wall St. Morgan had merged with the commercial bank Chase to become JPMorgan Chase the periods vanished in order to disassociate from the idea of Morgan, the manled by the risk-averse Jamie Dimon. Must redeem within 90 days. I continue to believe not enough people went to prison for mortgage gilllian.

Dimon was never willing to immerse the company in the subprime CDOs collateralized debt obligations the way other banks were doing told his derivatives experts examined them closely and repeatedly but could never figure out a way to mitigate the risk connected to the CDOs’ super-senior tranches.

On the other hand, the fat bonus regime for the top management came back, but only because governments stand firmly behind the financial system, although it is still, for most part, in private-sector hands. The effect is a giant corporate welfare system that continues.

And I didn’t like the reader – Stephen Hoye. Tett’s columns at the FT. This is one of the drier accounts of the financial meltdown.

What lessons were learned? This resulted into more and more creative and synthetic structures. 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. First, by creating new products like derivatives – CDSs credit default swaps and CDOs collateral debt obligations based on all sorts of credits and mortgages; secondly, by putting these products in off-shore and off-balance vehicles, like SIVs Structured Investment Vehicles ; fett, by financing long term foo with short term debt.


Review: Fool’s Gold by Gillian Tett | Books | The Guardian

Like any academic she wants to know why things happened as they did. Return to Book Page. See all reviews.

Don’t have a Kindle? It’s like you raised a cute kid who then grew up and committed a horrible crime. While taxpayers were and are shouldering the risks, bankers and bank shareholders were are receiving most of the gains. For if there is one element, above all, that is how needed to restore sanity to banking, it is that policy makers, bankers and politicians must adopt a more holistic vision of finance. It was a wild weekend. 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 situation.

But among the drinking, nightclubbing and fist-fights lay a more serious purpose – to assess the possibility of building a business around the new-fangled concepts of credit derivatives. Morgan made payments to AIG, which assumed the risk 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.

This one focuses on what the pros were doing.