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Fearful Rise of Markets, The: Global Bubbles, Synchronized Meltdowns, and How to Prevent Them in the Future, CourseSmart eTextbook

By John Authers

Published by FT Press

Published Date: Apr 16, 2010

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Is the world economy already at risk of another, even more catastrophic financial collapse? How do so many investment bubbles form at once, across the world? Why are so many markets that "seemed" disconnected now able to collapse all at the same time? In The Fearful Rise of Markets, award-winning Financial Times journalist and editor John Authers takes on these critical questions, and offers real, deeply sobering answers. This remarkably clear and readable book helps you understand how the first truly global super-bubble was inflated - and now appears to be inflating again. Authers illuminates the multiple roots of repeated financial crises, including massive shifts in the global balance of economic power; the migration of key decisions from banks to capital markets funded with "other people's money"; the wholesale financialization of key asset classes; and massive failures of both academic theory and government policy. This book presents a truly global view, avoiding oversimplifications and ideology as it outlines how we got here and where we now stand. Even more valuable, it offers realistic solutions -- for both global decision-makers and individual investors who want to evade the fallout of the next financial collapse.

Table of Contents

Acknowledments     ix

About the Author     xii

Foreword     xiii

Timeline     xvi


Chapter 1: The Fearful Rise of Markets     1


Part I: The Rise

Chapter 2: Investment Becomes an Industry     9

Chapter 3: Indexes and Efficient Markets     16

Chapter 4: Money Markets Supplant Banks     25

Chapter 5: From Gold Standard to Oil Standard     32

Chapter 6: Emerging Markets     40

Chapter 7 Junk Bonds     48

Chapter 8: The Carry Trade     55

Chapter 9: Foreign Exchange     62

Chapter 10: Irrational Exuberance     69

Chapter 11: Banks Too Big to Fail     76

Chapter 12: Hedge Funds     83

Chapter 13: Dot Coms and Cheap Money     90

Chapter 14: BRICs     97

Chapter 15: Commodities     104

Chapter 16: Credit     112


Part II: The Fall

Chapter 17: Ending the Great Moderation     120

Chapter 18: Quant Funds     127

Chapter 19: Trust     133

Chapter 20: Bank Runs     139

Chapter 21: Bastille Day: Reflexive Markets     145

Chapter 22: Lessons from Lehman     152

Chapter 23: Politics and Institutions     158

Chapter 24: The Paradox of Diversification     163


Part III: The Fearful Rise

Chapter 25: Decoupling     171

Chapter 26: Banks Bounce     179

Chapter 27: A New Bubble?     186

Conclusion: 2010 and After     194


Notes     202

Bibliography     215

Index     222


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Fearful Rise of Markets, The: Global Bubbles, Synchronized Meltdowns, and How to Prevent Them in the Future, CourseSmart eTextbook
Format: Safari Book

$12.99 | ISBN-13: 978-0-13-248942-3