Too Smart for Our Own Good
Ingenious Investment Strategies, Illusions of Safety, and Market Crashes
by:
Bruce I. Jacobs
in:
Investing
Summary:
The book examines the complexities and risks of modern investment strategies, highlighting how innovations intended to improve financial safety can lead to market instability and crashes. It delves into the mechanisms behind these strategies, their unintended consequences, and the illusions of security they create for investors.
Key points:
1. Leverage Risks: Jacobs warns that using leverage can increase profits but also boost losses, potentially causing bigger market crashes. He shows how leverage can create hidden systemic risks.
Books similar to "Too Smart for Our Own Good":
Contagion
John R. Talbott
Reforming U.S. Financial Markets
Randall S. Kroszner|Robert J. Shiller
When Prime Brokers Fail
J. S. Aikman
Financial Reckoning Day
William Bonner|Addison Wiggin
The Shifts and the Shocks
Martin Wolf
The Bankers' New Clothes
Anat Admati|Martin Hellwig
The Origin of Financial Crises
George Cooper
After the Music Stopped
Alan S. Blinder
Inventing Money
Nicholas Dunbar
A Demon of Our Own Design
Richard Bookstaber