MarketPinch offers reviews and short commentary on books and articles on economics, market trends and stocks.

Wednesday, March 10, 2010

Fool's Gold: How the Bold Dream of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe by Gillian Tett

This book revolves around the story of how Credit Default Swaps (CDS) went from an obscure innovation to a phenomenon that became the leading instrument in managing risk. It looks at how banks were reckless in their use of derivatives and touches on the theme of un-regulated use of financial innovation in the hands of the greedy. For me reading this was experiencing the building of a house of cards and watching how it fell apart. At some point I felt my stomach feel the sensation I would liken to being on a roller coaster. I would recommend it to anyone who wanted an easy to follow guide on how the world of derivatives brought the financial world to its' knees.


  1. Sounds interesting. Is it heavy on jargon, i mean will a non-finance person like me get it?

  2. it is quiet simple actually. Gillian Tett writes for the Financial Times, so the language is very British, and the piecing together is beautiful.

  3. Interesting.. However, those who have broader awareness in economics/finance understand better..! :(