New Book – ‘The Money Formula’
Check out the deadly elegance of finance’s hidden powerhouse in ‘The Money Formula.’
Quant gurus Paul Wilmott and David Orrell just dropped a new book about the sketchy underbelly of finance. Titled ‘The Money Formula’, the authors take you inside the engine room of the global economy to explore the multivariate world of mathematical finance, and show how the future of our economy rests on the backbone of this rather dodgy and impenetrable industry.
Written not from a post-crisis vantage point – but from a preventative point of view – this bombshell book traces the development of financial derivatives from bonds to credit default swaps and exotically structured notes, and shows how mathematical formulas like this onewent beyond basic pricing to expand their use to the point where they eclipsed the real economy – and almost engendered the financial apocalypse.
You’ll learn how the deadly allure of their ice-cold beauty has misled generations of economists and investors, and how continued faith in these formulas can either assist future economic development, or send the global economy into a financial tailspin.
Rather than re-hash tales of post-crisis fallout, this book focuses on preventing the next one. By examining the heart of the shadow economy, you’ll be better prepared to ride the rough waves of finance and risk management into the turbulent future. The main themes can be distilled like this:
Delve into one of the world’s least-understood but highest-impact industries
Understand the key principles of quantitative finance and the evolution of the field
Learn what quantitative finance has become, and how it affects us all
Discover how the industry’s next steps dictate the economy’s future
How do you create a quadrillion dollars out of nothing, blow it away and leave a hole so large that even years of “quantitative easing” can’t fill it – and then go back to doing the same thing? Even amidst global recovery, the financial system still has the potential to seize up at any moment. ‘The Money Formula‘ explores the freaky underpinnings of financial disaster, and what must happen to prevent the next one.
VIVISXN loves this book because the topical range is really relevant, expertly systematized and replete with reason and foresight on risk frameworks and modelling. Right now global markets are extra-frothy and there is an insane sense of complacency amongst traders and investors. In an angsty world of nuclear braggadocio, trade tiffs, trans-national terrorism and advanced neural networks/algo trading (i.e. quant hubris), many things could go haywire at once. Rarely have so many asset classes – from stocks and bonds to real estate and bitcoin – exhibited such a sense of invulnerability. ‘The Money Formula’ is a savvy book on the current state of Global Wall Street and the sketchball shit that goes down. Read it!
‘The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets’ by Paul Wilmott and David Orrell – WILEY Press 2017
VIVISXN MEDIA – Finance + Math + Cool Shit