• Title: The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets
  • Author: Paul Wilmott David Orrell
  • ISBN: null
  • Page: 477
  • Format: Kindle Edition
  • The Money Formula Dodgy Finance Pseudo Science and How Mathematicians Took Over the Markets Explore the deadly elegance of finance s hidden powerhouse The Money Formula takes you inside the engine room of the global economy to explore the little understood world of quantitative finance and
    Explore the deadly elegance of finance s hidden powerhouse The Money Formula takes you inside the engine room of the global economy to explore the little understood world of quantitative finance, and show how the future of our economy rests on the backs of this all but impenetrable industry Written not from a post crisis perspective but from a preventative point of viewExplore the deadly elegance of finance s hidden powerhouse The Money Formula takes you inside the engine room of the global economy to explore the little understood world of quantitative finance, and show how the future of our economy rests on the backs of this all but impenetrable industry Written not from a post crisis perspective but from a preventative point of view this book traces the development of financial derivatives from bonds to credit default swaps, and shows how mathematical formulas went beyond pricing to expand their use to the point where they dwarfed the real economy You ll learn how the deadly allure of their ice cold beauty has misled generations of economists and investors, and how continued reliance on these formulas can either assist future economic development, or send the global economy into the financial equivalent of a cardiac arrest Rather than rehash tales of post crisis fallout, this book focuses on preventing the next one By exploring the heart of the shadow economy, you ll be better prepared to ride the rough waves of finance into the turbulent future Delve into one of the world s least understood but highest impact industries Understand the key principles of quantitative finance and the evolution of the field Learn what quantitative finance has become, and how it affects us all Discover how the industry s next steps dictate the economy s future How do you create a quadrillion dollars out of nothing, blow it away and leave a hole so large that even years of quantitative easing can t fill it and then go back to doing the same thing Even amidst global recovery, the financial system still has the potential to seize up at any moment The Money Formula explores the how and why of financial disaster, what must happen to prevent the next one.

    One Reply to “The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets”

    1. Quants are the postmodernists of Wall Street. It sounds impressive with all those equations and jargon but in your heart, you feel it is an obscuring smokescreen from a self-aggrandizing fool. Only the damage is much worse on the economy and the market and ordinary people. This book lifts up the hood and shows you how these characters operate and work on history's biggest scam ever. Definitely demystifying.

    2. Excellent. The examples in this book are straight-forward and easy to understand. I'm not sure what to make of Chapter 6 though. It would have made more sense to move Chapter 6 towards to end. But overall, a great read.

    3. É um ótimo livro. Os autores são totalmente brutais com respeito às suas críticas mas sem perder a leveza. É um livro com uma crítica bem clara a um abuso matemático em finanças que te faz rir.Seria uma recomendação inicial para qualquer um interessado no assunto, mas os autores assumem implicitamente uma certa familiaridade com derivativos, o que dificulta. O livro também acaba, na minha opinião, meio abruptamente.

    4. Great by possibly the worlds most intelligent quant Who arguably makes the case against various aspects of conventional finance theories. In writing about one of the world's most complex fields, these two authors articulately give a reader insight and critique the validity of the financial world's models.

    5. Paul Wilmott is a researcher and quantitative finance consultant who's worked as a fund manager and academic while David Orrell is an applied mathematician and founder of a scientific consultancy. In this book, they look at the theories and formulae that underpin the quantitative finance models used by hedge funds and other financial institutions and explain why they're so flawed in a challenging but interesting read told in a breezy style.

    6. Very interesting overview of how quantitative finance got to where it is today. Loved the sarcasm and humor. Was hoping for a stronger finish

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