Lecturing birds on flying: can mathematical theories destroy the financial markets?

Leading and contrarian thinkers have been talking for years about the conflicts between theoretical and real finance. Nassim Taleb first addressed the issue in his technical treatise on options, Dynamic Hedging. Now, in Lecturing Birds, Pablo Triana moves the conversation to a narrative that anyone can follow,and explains how it is that theoretical finance can fail dramatically in the real world. The heart of the book, though, isn't about technicalities, but instead, it explores how widely-accepted theories that are applied daily cause our world real harm. Many times, it's the quantitative models that hedge funds and investment banks use (and regulators and rating agencies embrace) what leads to market implosions, by providing false guidance and misplaced certainty and sanctioning unsavory behaviour. In fact, these models were largely responsible for the stock market crash of 1987, the LTCM crisis of 1998, the recent credit crisis of 2007, and many other blow-ups.

• ISBN: 978-0-470-40675-5
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 400
• Fecha Publicación: 17/06/2009
• Nº Volúmenes: 1
• Idioma: Inglés