I am Kevin Dowd, a professor of finance and economics at Durham University. I co-authored Alchemists of Loss with Bear’s Lair journalist and ex-merchant banker Martin Hutchinson. Our book discusses the cause of the Global Financial Crisis. Looking over this and many other historical booms and busts, the point that jumps out at me is that the lesson man draws from history is that man learns nothing from it. For it is the doom of men (and women) that we forget.
I co-wrote...
Alchemists of Loss: How Modern Finance and Government Intervention Crashed the Financial System
Alchemists of Loss explains how a toxic combination of modern financial theory, counterproductive regulation, a captured financial system, and Keynesian easy money policies brought about the Global Financial Crisis of 2007 to 2010. Modern finance has produced a massive rent extraction machine that allows financiers to exploit everyone else. Meanwhile, financial risk management and financial regulation have revealed themselves to be utterly counterproductive, and post-crisis reforms have done little to solve the underlying problem of poor incentives and excessive risk-taking.
“Bracing, sharp, bleakly amusing and profoundly depressing, Alchemists of Loss is a fascinating, smart, often contrarian analysis of how the financial system got into the mess into which it now finds itself – and why none of us are likely to emerge in one piece.” (Andrew Stuttaford, National Review Online)
A classic account of an extraordinary 18th-century British financial and political scandal. The South Sea Bubble centred on the joint-stock South Sea Company, which was founded in 1711. The South Sea Bubble was an ambitious scheme to simultaneously pay off the British government's enormous debts while simultaneously getting rich in London's newly created stock market. The company was given a monopoly of trade with South America but had little prospect of success. The Bubble was an early Ponzi scheme that promised vast returns to early and well-connected investors.
Its collapse in 1720 ruined thousands of shareholders from all walks of life, many of whom had bought their shares on credit, and caused huge problems to banks and goldsmiths unable to collect the loans they had made to speculators to purchase stock. A public uproar ensued and the subsequent investigation revealed widespread fraud by insiders and corruption in the Cabinet.
An authoritative account of this extraordinary 18th-century financial, political, and royal scandal, this book describes the drama of the promotion, the insane fever of speculation, and the international impact of the final collapse.
A gripping portrait of a Dickensian financial scandal that led to the last English bank run before the run on Northern Rock in 2007. Founded in 1800 and controlled by Quakers, the firm that was to become Overend and Gurney grew to become London’s leading discount house, specialising in the safe business of discounting bills of exchange. In the 1850s, it became more aggressive and was eventually investing depositors’ funds in highly speculative ventures that promised spectacular profits that never materialised. When market conditions became adverse, Overend and Gurney found itself in dire straits. The Bank of England refused to bail it out and Overend and Gurney was run out of business in 1866. Its failure led to a major financial crisis, the ruin of many investors, and the directors being put on trial in the Old Bailey for fraud.
This is an entertaining and intriguing account portrait of a period in history and a financial event that was the Barings scandal of its day. In May 1866, Overend and Gurney, the City of London's leading discount house - with a turnover second only to that of the Bank of England - suspended all payments and provoked a 'panic without parallel in the financial history of England'. Within three months of the event more than two hundred other companies had collapsed. Overend and Gurney itself had debts equivalent to GBP 1 billion at today's values. Remarkably, Overend and Gurney was…
A classic on one of history's best-known financial dramas. Once in Golconda provides a fast-paced account of the greed and euphoria of the '20s Wall Street bull market, the subsequent crash of '29, and its painful aftermath, not just for those investors who got caught up in the speculative mania and became victims of their own cupidity, but for many others too. Focusing on the lives and fortunes of some of the era's most memorable financiers, its main protagonist and anti-hero is Richard Whitney, the Wall Street aristocrat who became president of the New York Stock Exchange and ended up doing time in Sing Sing for embezzlement.
Once in Golconda "In this book, John Brooks-who was one of the most elegant of all business writers-perfectly catches the flavor of one of history's best-known financial dramas: the 1929 crash and its aftershocks. It's packed with parallels and parables for the modern reader." -From the Foreword by Richard Lambert Editor-in-Chief, The Financial Times Once in Golconda is a dramatic chronicle of the breathtaking rise, devastating fall, and painstaking rebirth of Wall Street in the years between the wars. Focusing on the lives and fortunes of some of the era's most memorable traders, bankers, boosters, and frauds, John Brooks brings…
How financial rocket scientists were bested by financial markets. When Genius Failed is the rise and fall of the giant hedge fund Long-Term Capital Management. Its principals involved the best of Wall Street and two of the inventors of the Nobel-winning option price formula. Famed for its expertise in financial modelling, the firm leveraged its bets to make large returns but only for a while. It became unstuck when Russia defaulted on its debts in the summer of 1998 and was only saved from failure by a Fed bailout, which thereby set a bad precedent for the future: favoured Wall Street firms that take excessive risks could expect to be bailed out at other people’s expense. The LTCM fiasco shows the limits of academic modelling of financial markets, not least because even if the academic modelling is initially correct, it fails to account for the ways in which markets adapt to strategies based on that modelling and thereby undermine it.
Picking up where Liar's Poker left off (literally, in the bond dealer's desks of Salomon Brothers) the story of Long-Term Capital Management is of a group of elite investors who believed they could beat the market and, like alchemists, create limitless wealth for themselves and their partners.
Founded by John Meriweather, a notoriously confident bond dealer, along with two Nobel prize winners and a floor of Wall Street's brightest and best, Long-Term Captial Management was from the beginning hailed as a new gold standard in investing. It was to be the hedge fund to end all other hedge funds: a…
I am adopted. For most of my life, I didn’t identify as adopted. I shoved that away because of the shame I felt about being adopted and not truly fitting into my family. But then two things happened: I had my own biological children, the only two people I know to date to whom I am biologically related, and then shortly after my second daughter was born, my older sister, also an adoptee, died of a drug overdose. These sequential births and death put my life on a new trajectory, and I started writing, out of grief, the history of adoption and motherhood in America.
I grew up thinking that being adopted didn’t matter. I was wrong. This book is my journey uncovering the significance and true history of adoption practices in America. Now, in the wake of the U.S. Supreme Court’s overturning of Roe v. Wade, the renewed debate over women’s reproductive rights places an even greater emphasis on adoption. As a mother, historian, and adoptee, I am uniquely qualified to uncover the policies and practices of adoption.
The history of adoption, reframed through the voices of adoptees like me, and mothers who have been forced to relinquish their babies, blows apart old narratives about adoption, exposing the fallacy that adoption is always good.
In this story, I reckon with the pain and unanswered questions of my own experience and explore broader issues surrounding adoption in the United States, including changing legal policies, sterilization, and compulsory relinquishment programs, forced assimilation of babies of color and Indigenous babies adopted into white families, and other liabilities affecting women, mothers, and children. Now is the moment we must all hear these stories.
Who Is a Worthy Mother?: An Intimate History of Adoption
Nearly every person in the United States is affected by adoption. Adoption practices are woven into the fabric of American society and reflect how our nation values human beings, particularly mothers. In the wake of the U.S. Supreme Court's overturning of Roe v. Wade, the renewed debate over women's reproductive rights places an even greater emphasis on adoption. As a mother, historian, and adoptee, Rebecca C. Wellington is uniquely qualified to uncover the policies and practices of adoption. Wellington's timely-and deeply researched-account amplifies previously marginalized voices and exposes the social and racial biases embedded in the United States' adoption industry.…
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