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''A Demon of Our Own Design'' (2007) is a book by veteran Wall Street risk manager Richard Bookstaber, about, as the subtitle says, "markets, hedge funds, and the perils of financial innovation." The theme of the book is that the world financial system is vulnerable to singularities—disasters arising out of apparently trivial details, as implied by chaos theory and its Butterfly effect. He discusses the critical and often underappreciated role of liquidity in the markets and presents a theory of 'normal accidents' arising from the combination of tight coupling and complexity. Bookstaber reviews accidents such as Three Mile Island, ValueJet and Columbia as examples of 'normal accidents' that have corollaries in the financial markets. The efficient market hypothesis comes under attack in this book using biological and evolutionary analogies. He suggests that overspecialization to an environment leads one vulnerable to change. Therefore, the best adaptive approach is often to have a 'coarse' approach that may ignore fine grained stimuli. Risk management, however sophisticated it is or can become, won't end this vulnerability. To the contrary, "the more intricate risk-management structures may actually make the system worse." The dust jacket of the book carries a detail of "The Fall of Icarus," by Jacob Peter Gowy. Bookstaber had a front-side seat for such crises as the stock market crash of 1987 and the demise of Long-Term Capital Management and his book is built around themes drawn from those experiences. ==Table of Contents== *Acknowledgments. *About the Author. *CHAPTER 1: Introduction: The Paradox of Market Risk. *CHAPTER 2: The Demons of ’87. *CHAPTER 3: A New Sheriff in Town. *CHAPTER 4: How Salomon Rolled the Dice and Lost. *CHAPTER 5: They Bought Salomon, Then They Killed It. *CHAPTER 6: Long-Term Capital Management Rides the Leverage Cycle to Hell. *CHAPTER 7: Colossus. *CHAPTER 8: Complexity, Tight Coupling, and Normal Accidents. *CHAPTER 9: The Brave New World of Hedge Funds. *CHAPTER 10: Cockroaches and Hedge Funds. *CHAPTER 11: Hedge Fund Existential. *Conclusion: Built to Crash? *Notes. *Index. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「A Demon of Our Own Design」の詳細全文を読む スポンサード リンク
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