December 2015
Beginner
384 pages
11h 32m
English
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Chapter 21
Ten Days that Shook the (Financial) World
In This Chapter
Misreading causes and effects
Countering conventional wisdom
History is written by the victors.’ So said Winston Churchill. Er, not quite. Churchill actually said in a debate with Prime Minister Stanley Baldwin that he was confident history would find Baldwin in the wrong, ‘because I shall write that history’. So, what’s the point? The point is: don’t believe everything you read. Survivors write accounts of financial disasters; financial risk managers have more need to understand the decisions taken by the losers. Here are ten, mostly one-day financial disasters whose popular accounts misstate the financial risk management lesson.
If you have a serious interest in financial risk management, I urge you to do in-depth research on all these episodes. The capsule summaries in this chapter have been simplified to a high degree. Mulling over the complex ins-and-outs, the might-have-beens and the variety of people and motivations involved can help you gain the nuanced perspective necessary to make forward-looking risk judgements.
3 February 1637: Tulipmania
Conventional wisdom: Holland went crazy in a frenzy of speculative trading and bid the price of tulip bulbs to unsustainable levels.
The popular account of Tulipmania ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.