BOOKSTABER: MARKET RISKS
Well before the 2008/2009 financial crisis leading risk expert, Richard Bookstaber warned about the potential dangers of high leverage and complex financial derivatives in his book, A Demon of Our Own Design: Markets, Hedge Funds and the Perils of Financial Innovation. He is now concerned about two new market risks: illiquidity and low volatility and writes about them in his new book, THE END OF THEORY: Financial Crises, the Failure of Economics, and the Sweep of Human Interaction. He explains why its titled THE END OF THEORY.
