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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Granted I chose to teett a teacher, and not just a teacher but a public school teacher, and not just a public school teacher, but a public school teacher in Colorado, and not just in Colorado but in the portion of the state which has the lowest average salaries in the region.

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Feb 18, Gumble’s Yard rated it liked it Shelves: Another good reason to read on The end result is hubris and eventual catastrophe.

Write a tet review. Largely, Tett succeeds at this task. Dec 19, DoctorM rated it really liked it Shelves: But, the number of households that could afford prime mortgages was limited.

The Smartest Fooo in the Room: She has written about the financial instruments that were part of the cause of the financial crisis that started in the fourth quarter ofsuch as CDOs, credit default swaps, SIVs, conduits, and SPVs. Must read yo truly understand the credit crisis Excellent account and easy to understand the complex situation during the credit bubble. This book starts very slow, going way back 20 years into the history of JP Morgan Chase bank.

And I didn’t like the reader – Stephen Hoye. 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. Mar 09, John rated it really liked it.

The credit instruments were perceived to be so technical and complex that hardly anyone outside the small group that dealt with them made any attempt to know about them, let aside to understand them. However, the book is best read in conjunction with Nicholas Shaxson’s Treasure Islands – hence the four stars. It is In Fool’s 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.


This was a good 3rd book to read, with each book you pick up a few more of the details of what was going on before, during and after the collapse of American Investment Banking. Frankenstein type scenario where some financial engineers with goo Excellent read.

They had parties, we got the hangover

What is clear though, is that, as the subtitle indicates, the financial market was corrupted by greed essentially underlining for those who needed to hear it that nothing human-made and run can be left to itself and assumed to be safe and able to self-regulate and ended up just blowing itself up.

I’m reminded of Thoreau, who said that superfluous money can only be superfluities, and given that you don’t need superfluities, there’s no limit to how much you ttet because the need can’t ever be satisfied 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. Morgan itself stayed well away from the risky concoctions others were peddling — catastrophe followed.

So, the whole world of “derivatives” and “complex investment vehicles” generally soars right above my head. The story follows a team from JPMorgan, who invented some of the credit derivatives that brought down the banks in They themselves never used then in conjunction with go,d mortgages, and they were apparently dumbfounded that anyone would do so. The trouble begins when everyone catches on and applies a good idea to inappropriate concepts.

The reading of this book was the result of one such collision!

Fool’s Gold by Gillian Tett

Many assumptions about the western financial system have collapsed since the fall of Lehman Brothers. Despite covering a lot of esoteric and abstract material, it flows very well and reads very quickly.


The Fed chairman was against the regulation of derivatives because he believed that they made markets more efficient.

These trades started to falter when the subprime market began to falter in — unfortunately the book and most other analysis tillian unclear on what led the subprime housing market to start faltering in the first place.

Best read in conjunction with the many books related to specific banking disasters in the crash, also alongside books from politicians – although as they match up only in parts it can be hard to separate perceptions from reality to get the story golc.

Also, Jamie Dimon must be a ridiculously charismatic guy, since both Tett and Andrew Ross Sorkin write about him like he saved the world.

Fool’s Gold | Book by Gillian Tett | Official Publisher Page | Simon & Schuster

What about the nature bold financial innovation, where an idea is quickly imitated by competitors and margins are driven down as more participants flood the market?

The whole thing was unregulated by government, and the ratings agencies were easily bamboozled into turning poo into gold as it turned out.

Dimon was never willing to immerse the company in the subprime CDOs collateralized debt obligations the way other tetr were doing – 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.

Dimon was never will This is one of the drier accounts of the financial meltdown. Want to Read saving…. Not so at other investment banks, as the reader eventually discovers While taxpayers were and are shouldering the fpol, bankers and bank shareholders were are receiving most of the gains. This is highly recommended. Morgan team that played a pivotal role in the development yett credit derivatives and the picture painted of that bank and that team is far from what I had expected from said sub-title.