THE QUANTS: HOW A NEW BREED OF MATH WHIZZES CONQUERED WALL STREET AND NEARLY DESTROYED IT PDF, EPUB, EBOOK

Scott Patterson | 337 pages | 02 Feb 2011 | Random House USA Inc | 9780307453389 | English | New York, United States : How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It PDF Book Scott Patterson The Quants Similar books. Paulso… More. The only interesting figures in the book, Thorp, Shannon, Mandelbrot, Farmer and Taleb were only given minor attention. Shelve A Man for All Markets. Original Title. Most books which detailed the Great Recession of has basically restated the same thing, in almost the same refrain that its author knew that the world was running blindfolded towards a speeding train. I'm glad I didn't bother reading any of these reviews Patterson appears to lay the primary blame for the panic at the feet of the quants. Everyone, that is, except a few reckless wildcatters - who risked their careers to prove th… More. Yes, default models are based on history, and it is true that modelers now understand that the fourth component can blow out and bonds may trade like stock, regardless of the fair value of the underlying cashflows, making modeled prices at that point irrelevant. Sep 25, Phil Simon rated it really liked it Shelves: business. It's a great backstory that walks you through the original algorithmic traders on wall st and how their quantitative analysis strategies evolved from trying to beat the dealer at blackjack or game the roulette wheel, to running the world's financial markets. The book describes the world of quantitative analysis and the various hedge funds that use the technique. Patterson has a good writing style and the story moves along at a decent clip. The writing is hackneyed. Skip to content. On March 5, , at A. But the hedge funds were the guys who did much of the risky gambling that wiped out trillions of dollars of the nation's wealth. The quants believed that a dizzying, indecipherable-to-mere-mortals cocktail of differential calculus, quantum physics, and advanced geometry held the key to reaping riches from the financial markets. But it's not even a narrative, let alone one supported by evidence. Want to Read. Luckily there are other books out there that do just that. When to market behaved less rational, the flaws in their models beca the quants- hedge funds guys with high level phd's in mathematics built financial models; spectacular gains especially Ken Griffen of Citadel at first, then everything fell apart during the credit crunch and great recession. The influence of the ruble on the real estate market in the US is a subject that has just begun to be explored. As confidence in these now shaky investments fell, creditors demanded more collateral, a margin call, from firms holding them, forcing the debtor firms to raise more money by selling assets. Scott Patterson. In all, this book is an adequate narrative of how quantitative analysts and their creations came to become such an integral and potentially dangerous part of the global financial system. I would highly recommend this book to anyone who finds soundbite media coverage of the economy lacking, and instead would like a more in-depth account of precisely what might have gone wrong in our economic systems over the past 5 years, or past 50 years if we really start to interrogate the genealogy of the present problems. An enduring masterpiece of investigative… More. In that case, we can't However, this is the brilliance of Patterson that he had dug out details hitherto unknown. Details if other :. This book is pretty dense. Patterson is a gifted writer and I I've read more than a few books on Wall Street's latest fiasco. I enjoyed reading about the mathematics of Brownian Motions, fractals, or about Mandelbrot and how they impacted the new financial modeling on top of statistics. Aug 11, Taty K rated it liked it Shelves: economics-finance. The work by Mandelbrot who predicted this years before and Nassem Nicolas Taleb who has been vocal about the excesses of the Quants, play a minor role too. A great insight into the lives and businesses of some of the most important personalities of the hedge fund industry , from AQR to Citadel among others etc.. And they helped create a digitized money-trading machine that could shift billions around the globe with the click of a mouse. But on the other hand, they seem to have been mathematical lemmings. It is not likely that exogenous variables can be incorporated into any useful model. This is merger arbitrage, and it is not rocket science. In My Life as a Quant, Emanuel Derman relives his exciting journey as one of the first high-energy particle physicists to migrate to Wall Street. Shelve Hedge Fund Market Wizards. The introduction to The Quants describes the real- life, annual, high-stakes poker match between Wall Street's hedge fund managers, comparing their trading styles to their poker strategies. The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It Writer

View all 4 comments. Instead they were really very accurate, which is a large part of the problem and caused a bit of a selffulfilling prophecy. It's a search for Lots Of Little Oopses. In The New Market Wizards, successful traders relate the financial strategies that have rocketed them to success. And they helped create a digitized money-trading machine that could shift billions around the globe with the click of a mouse. A good starting point for anyone who wants to understand the history of quants. Yes the collateral is garbage but statistically only half or less of it, and that is key. Haelfix says:. This caused a panic, which triggered more rapid selling and more models to trigger selloffs too much redundancy on systems that are too similar. When these bets payed off, the outcome was large profits. He is a genius. T… More. It probably really depends on what you enjoy reading: I did like the background storytelling of Ed Thorp, Beat the Dealer, and the very early beginning of mathematics on Wall Street. Starting in late they were experiencing sigma events every week. In both cases the authors picked an inherently exciting topic; let the excitement tell itself and spend your energy telling us things we don't know rather than trying to inject more adrenaline into it. This is the exact opposite of a search for The Truth. Chris Oakley says:. Patterson has a good writing style and the story moves along at a decent clip. With regards to complex financial instruments such as collateralized debt obligations and other mortgage backed securities, they assumed that bundling a group of mortgages into a single instrument would spread out the risk associated with a single borrower failing to pay, failing to consider dynamics that could cause multiple borrowers to fail to pay. At that point, you had firms that had been basing a large percentage of their forecasting and risk assessment on these things, all of a sudden lose complete predictive power. And if you don't know about the quant kerfuffle, why on earth would you want to? One mathematician at the fund may have succumbed to the pressure on March 1, It's a great backstory that walks you through the original algorithmic traders on wall st and how their quantitative analysis strategies evolved from trying to beat the dealer at blackjack or game the roulette wheel, to running the world's financial markets. SteveM says:. But instead I wasted my time on this garbage. Sep 25, Phil Simon rated it really liked it Shelves: business. They also had well defined regimes of applicability where the model was supposed to be valid. The book is easy to read and the author is very capable in making his point. But the hedge funds were the guys who did much of the risky gambling that wiped out trillions of dollars of the nation's wealth. Towards the end, I am not even sure what the overall narrative was supposed to be. Help Learn to edit Community portal Recent changes Upload file. The LTCM predictive models did not account for the collapse of the ruble. Sometimes less is more. Patterson just couldn't make them into figures that you want to root for or root against. On the financial industry scale though, all these numbers would be rounding errors…. He left behind a six-year-old son named Arthur. Mar 06, Luaba rated it it was amazing Shelves: science. I agree with Peter that the quants who did the real damage were not these relative small-time gamblers, but those whose models gave AAA ratings to horse-excrement sub-prime mortgage bonds. A lot of hedge funds loaded up on A-like bonds when they got spectacularly cheap, priced way below their fundamental value. Computer systems have depreciated the traditional wall st trader. This seemed kind of repetitive and I wouldn't recommend this book to anyone who doesn't want to read all about analysis and formulas and their creators. I enjoyed the characters in the book but the last half of the book felt like I knew what was going to happen and just felt like it was lot of fluff. The influence of the ruble on the real estate market in the US is a subject that has just begun to be explored. The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It Reviews

While I liked Lewis' book a bit more, the Quants more than holds its own. While I concede that he made a strong case for their contribution to the situation, I am not convinced that they are the primary cause if. Patterson began writing The Quants in Arguably that was actually the problem, because they were either too inflexible about violations of their assumptions or failed to communicate the importance of flexibility to others , but I guess that didn't make as exciting of a story? The writer makes the characters in his book sound like victims themselves at the end of the book. Welcome back. A good starting point for anyone who wants to understand the history of quants. Chris Oakley says:. You know the saying: There's no time like the present If one were to fact The writer makes the characters in his book sound like victims themselves at the end of the book. LTCM collapsed primarily because they were massively overleveraged and because they had way too much faith invested within a piece of solvable stochastic analysis that is emperically wrong since markets are not perfectly Gaussian. The blame is squarely placed on traders that make use of mathematical models, missing the contribution of leverage to the financial crisis. No trivia or quizzes yet. However, this is the brilliance of Patterson that he had dug out details hitherto unknown. Feb 11, Abeisu rated it liked it. In my view, this was, well, bullshit. There are no discussion topics on this book yet. Generations of readers have found that it has more to teach them about ma… More. Mar 10, David rated it liked it Shelves: economics , audiobook , nonfiction , business. Enjoyable book. The rule required banks to hold a large reserve of cash as a cushion against big losses on those holdings. The reason for the low rating is two fold: The authors mistreatment of mathematics, and amazingly spiteful bias towards anything he calls a Quant. What programs like TARP initially and banks tried to do was to warehouse these bonds and hold them to maturity realizing their cashflows or until the market returns from trading bonds like they were GM stock…. Ed Thorp on the other hand used the Kelly criterion as a guide when he played blackjack so that he would not overbet and wipe out his edge. The discrepancy between employment opportunities and starting salaries in the financial sector to any other is or was mind boggling. A good historical account of the development of quantitative finance. Disclaimer: I worked in derivatives on Wall Street for several years, though this book is more focused on stat arb, not my area. I am starting an algorithmic trading fund, so I liked this book because I am trying to get more focused information on the history of algorithmic trading on Wall St and with traditional investment firms. Patterson is able to gracefully explain the complex ideas underpinning our financial system through an extraordinarily engaging and insightful story. AJ Scruffles says:. March 4, at am. Mathematical models, again, would not have helped. Company A decides to buy company B, exchanging x shares of B for a share of A. It's amusing to learn about the details of how their models broke down and how these supposed geniuses got caught with their pants down. That's why they lost so much money. Peter Woit says:. I have a few quant friends, and the story I heard was a little different.

The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It Read Online

Search for:. About Scott Patterson. Overall it is a good story but not great! Patterson is a gifted writer and I I've read more than a few books on Wall Street's latest fiasco. Arguably that was actually the problem, because they were either too inflexible about violations of their assumptions or failed to communicate the importance of flexibility to others , but I guess that didn't make as exciting of a story? Market Wizards by Jack D. Bloomberg L. This book describes some of the causes of the financial crisis at the most fundamental level. Shelve Den of Thieves. Nov 01, Ob- jonny rated it liked it. Namespaces Article Talk. Nobody but only a select few sensed what was happening and dared to out their money where Brilliant! Interest rates were too low because the Fed decreed them to be so negative, in real terms for an extended period after the dotcom implosion itself a previous iteration of the same scenario. In my view, this was, well, bullshit. Can one say that A bonds should be rated F because they are backed by sub-prime loans and lost so much market value at the bottom of the crisis? I guess sheer greed just got in the way. The writer talked about a bunch of highly intelligent math whizzes, the so-called Quants, about how they created algorithms to beat the market, and in the process earning themselves and their companies lots of money. The whole financial system went mad that people bet against others to fail and created the invisible money from the thin air Everyone, that is, except a few reckless wildcatters - who risked their careers to prove th… More. Thanks for book review since I probably would have missed it. Interestingly, Nassim Taleb mentioned in this book as an incredulous commentator, noting that no one can predict the market or beat the market in the long run. I'm not sure I followed all of the different players and why exactly my mortgage is more expensive than my house, but this was definitely an interesting and mostly accessible read about how our economy ended up in the dumps and whet my appetite for more. But instead I wasted my time on this garbage. N Chriss was a graduate student who took lecture notes that formed the basis of the book. Strippers and Flippers. He left behind a six-year-old son named Arthur. This is his first book. In the UK the most common destination for science graduates in applicable fields is banking. The pervasive Poker Theory forces Patterson into a straightjacket as regards his casting decisions—colourful though these depicted characters prove to be—and he assigns the label Quant to those who do not seem to merit it and blame for the economic crisis of to these same Quants in what, in my humble opinion, is a mostly erroneous and misplaced determination of guilt. But it's not even a narrative, let alone one supported by evidence. But everyone knew these models were nonsnse to begin with. Read more https://img1.wsimg.com/blobby/go/fc6ce614-d22d-4be3-9a7a-ba47c91a8da3/employee-to-entrepreneur-how-to-earn-your-free.pdf https://img1.wsimg.com/blobby/go/a08cc877-c968-41c7-8a3f-1351a237cc3a/the-reboot-with-joe-juice-diet-recipe-book-ove.pdf https://cdn.starwebserver.se/shops/nellienordinjo/files/topsy-and-tim-meet-the-firefighters-176.pdf https://img1.wsimg.com/blobby/go/1a73c1cf-417c-4901-b722-1960c2c57d09/100-foods-you-should-be-eating-how-to-source-p.pdf https://img1.wsimg.com/blobby/go/45784deb-875d-499e-a07e-febbb8940e8d/the-watkins-dictionary-of-symbols-381.pdf https://img1.wsimg.com/blobby/go/f257738d-21e9-486c-9b79-d8f68ef77bc2/taurus-books-you-love-to-hate-15.pdf https://img1.wsimg.com/blobby/go/0273a04f-2554-4382-aec3-0d9880f1b6aa/carmine-infantino-penciler-publisher-provocate.pdf