Friday Culture: Inventing Money

Today's Friday culture is Nicholas Dunbar, Inventing Money: The Story of Long-Term Capital Management and the Legends Behind It.  Dunbar not only aptly tells the story of LTCM's implosion but also details the financial theories which today drive hedge funds and the capital markets generally.  He also finds the time to tell the story behind the 1987 crash and the role of programmed trading and portfolio insurance.  Plus read about one of the greatest arbitrage trades of all time, in Italian postal bonds no less.  In these times, it is a great read.  Enjoy your weekend!

NB.  For those who want a book which more specifically focuses on LTCM you should check out When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein.