Fool’s Gold by Gillian Tett – From award-winning Financial Times journalist Gillian Tett, who enraged Wall Street leaders with her news-breaking warnings of a. At some point during Gillian Tett’s absorbing year gallop across the The sub -title of Fool’s Gold panders to this, suggesting “unrestrained. Gillian Tett, who oversees global market coverage for The Financial Times, offers some of each. In “Fool’s Gold,” she describes how a small.

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Morgan, as they were the first to pioneer the credit derivative as a potential instrument to mitigate risk. They simply sold it to banks that repackaged it into CDOs and sold to gullible investors looking for higher returns. How tragic that collecting easy fees and repackaging risk became an end in itself instead of the means to a better future. To ask other readers questions about Fool’s Goldplease sign up.

Start reading Fool’s Gold on your Kindle in under a minute. I think Tett probably explained the financial creations involved in this account of the Banking mess that led to the “Great Recession” as efficiently and effectively as one can for general readers and I’m still pretty foggy on what it all means.

First, by creating new products like derivatives – CDSs credit default swaps and CDOs collateral debt obligations based on all sorts of credits and mortgages; secondly, by putting these products in off-shore and off-balance vehicles, like SIVs Structured Investment Vehicles ; thirdly, by financing long term loans with short term debt. They then paid AIG to assume the risk of the mortgages underlying those securities going bad.

This one focuses on what the pros were doing.

Fool’s Gold | Book by Gillian Tett | Official Publisher Page | Simon & Schuster

I’m reminded of Thoreau, who said that superfluous money can only be superfluities, and given that you don’t need superfluities, there’s no limit to how much you want because the fool can’t ever be satisfied Morgan itself stayed well away from the risky concoctions others were peddling—catastrophe followed. In the s, the bank started to use credit derivatives in their transactions and did it very well.


Derivatives traders at other firms began assembling securities backed by subprime mortgages, trying to put together instruments that would be just risky enough to obtain returns but safe enough to obtain AAA ratings.

Once I realised it was not a colleague playing a practical joke, we had a cordial exchange of views on short-selling. That is a concept centered on wider social relations, which financiers forget at their peril.

Tett observes how a state of social silence developed around the credit derivatives. For if there is one element, above all, that is how needed to restore sanity to banking, it is that policy makers, bankers and politicians must adopt a more holistic vision of finance. And the perspective from outside of America was really good to hear too. Return to Book Page.

Sep 28, Popup-ch rated it liked it Shelves: Want to Read saving…. Made a Fortune and Survived a Catastrophe. It’s a well-written book and one of the best I’ve read in explaining in simple I was pleasantly surprised by this book, as the rather gopd sub-title had me worried.

Page 1 of 1 Start over Page 1 of 1. Morgan did not get into the business of mortgage backed securities.

Everything about this deal made sense: Gillian Tett is thorough in her research and I think the British Press Award for Journalist of the Year in is a fitting tribute for the journalist and her work.

When the holders teht sub prime debt could not reimburse their loan anymore, the CDO market simply imploded. Big Short was what the idiots were doing. S urprisingly for an account of the masculine world of finance, this book is full of women.


At what point does a several gpld dollar return on investment become inadequate returns? Oh dear, oh dear, what a mess!

Tett’s access to Dimon and the J. Granted I chose to become a teacher, and not just a teacher but a public school teacher, and not just a public school teacher, but a public school teacher in Colorado, and not just in Colorado but in the portion of the state which teyt the lowest average salaries in the region.

A survey of this magnitude is no mean achievement, especially when condensed to less than ten pages.

They had parties, we got the hangover

If I hadn’t worked in the financial industry I might be lost at points. She became renowned for her folo warning that a financial crisis was looming. Tett focuses on the rise and collapse of the credit derivative market she is the FT’s specialist on that and not on the subprime mortgages that attract so many other authors. The “social silence” around the explosion of derivatives, villian around the wealth and influence of the banking cadre, helped to construct and reinforce a new power structure and encouraged financiers to regard their activities as detached from the rest of society, until they became “like the inhabitants of Plato’s cave, who could see the shadows of outside reality flickering on the walls, but rarely encountered that reality themselves”.

These trades started to falter when the subprime market began to falter in — unfortunately the book and most other analysis is unclear on what led the subprime housing market to start faltering in the first place.