Gillian Tett, Fool’s Gold

May 3, 2009

The excerpt from Gillian Tett’s forthcoming book in the FT is well worth reading.  She explains the ways in which JP Morgan participated in pioneered credit derivatives… but why they did not get caught in the subprime mortgage debacle.

Fool’s Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe’ by Gillian Tett. It is published this week by Little, Brown, £12.99, and in mid-May by Simon & Schuster in the US.

2 Responses to “Gillian Tett, Fool’s Gold”

  1. danielbeunza Says:

    I read it, but I did not get that much insight about JP Morgan escaped the problem. Tett presents a story about “the number being too big”, even if it was supposed to be hedged and moved out of the books. What is the sociological mechanism here? Judgment? Intuition?

  2. marthapoon Says:

    Daniel, Seeing that the number were too big IS considered an explanation in some circles, although I agree that something about it does not seem totally satisfactory. The video on the site where Tett talks about narrative gives insight into how she made some of the the decisions to write the book in the way she did. In anycase, these are the high profile kinds of accounts that are coming out… seems worth following them.


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