Description
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: Electronic Book
$12.99 | ISBN-13: 978-0-13-248942-3
