The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It
Scott Patterson - 2010
They were preparing to compete in a poker tournament with million-dollar stakes, but those numbers meant nothing to them. They were accustomed to risking billions. At the card table that night was Peter Muller, an eccentric, whip-smart whiz kid who’d studied theoretical mathematics at Princeton and now managed a fabulously successful hedge fund called PDT…when he wasn’t playing his keyboard for morning commuters on the New York subway. With him was Ken Griffin, who as an undergraduate trading convertible bonds out of his Harvard dorm room had outsmarted the Wall Street pros and made money in one of the worst bear markets of all time. Now he was the tough-as-nails head of Citadel Investment Group, one of the most powerful money machines on earth. There too were Cliff Asness, the sharp-tongued, mercurial founder of the hedge fund AQR, a man as famous for his computer-smashing rages as for his brilliance, and Boaz Weinstein, chess life-master and king of the credit default swap, who while juggling $30 billion worth of positions for Deutsche Bank found time for frequent visits to Las Vegas with the famed MIT card-counting team. On that night in 2006, these four men and their cohorts were the new kings of Wall Street. Muller, Griffin, Asness, and Weinstein were among the best and brightest of a new breed, the quants. Over the prior twenty years, this species of math whiz --technocrats who make billions not with gut calls or fundamental analysis but with formulas and high-speed computers-- had usurped the testosterone-fueled, kill-or-be-killed risk-takers who’d long been the alpha males the world’s largest casino. The quants believed that a dizzying, indecipherable-to-mere-mortals cocktail of differential calculus, quantum physics, and advanced geometry held the key to reaping riches from the financial markets. And they helped create a digitized money-trading machine that could shift billions around the globe with the click of a mouse. Few realized that night, though, that in creating this unprecedented machine, men like Muller, Griffin, Asness and Weinstein had sowed the seeds for history’s greatest financial disaster. Drawing on unprecedented access to these four number-crunching titans, The Quants tells the inside story of what they thought and felt in the days and weeks when they helplessly watched much of their net worth vaporize – and wondered just how their mind-bending formulas and genius-level IQ’s had led them so wrong, so fast. Had their years of success been dumb luck, fool’s gold, a good run that could come to an end on any given day? What if The Truth they sought -- the secret of the markets -- wasn’t knowable? Worse, what if there wasn’t any Truth? In The Quants, Scott Patterson tells the story not just of these men, but of Jim Simons, the reclusive founder of the most successful hedge fund in history; Aaron Brown, the quant who used his math skills to humiliate Wall Street’s old guard at their trademark game of Liar’s Poker, and years later found himself with a front-row seat to the rapid emergence of mortgage-backed securities; and gadflies and dissenters such as Paul Wilmott, Nassim Taleb, and Benoit Mandelbrot. With the immediacy of today’s NASDAQ close and the timeless power of a Greek tragedy, The Quants is at once a masterpiece of explanatory journalism, a gripping tale of ambition and hubris…and an ominous warning about Wall Street’s future.
The Idea Factory: Bell Labs and the Great Age of American Innovation
Jon Gertner - 2012
From the transistor to the laser, it s hard to find an aspect of modern life that hasn t been touched by Bell Labs. Why did so many transformative ideas come from Bell Labs? In "The Idea Factory," Jon Gertner traces the origins of some of the twentieth century s most important inventions and delivers a riveting and heretofore untold chapter of American history. At its heart this is a story about the life and work of a small group of brilliant and eccentric men Mervin Kelly, Bill Shockley, Claude Shannon, John Pierce, and Bill Baker who spent their careers at Bell Labs. Their job was to research and develop the future of communications. Small-town boys, childhood hobbyists, oddballs: they give the lie to the idea that Bell Labs was a grim cathedral of top-down command and control.Gertner brings to life the powerful alchemy of the forces at work behind Bell Labs inventions, teasing out the intersections between science, business, and society. He distills the lessons that abide: how to recruit and nurture young talent; how to organize and lead fractious employees; how to find solutions to the most stubbornly vexing problems; how to transform a scientific discovery into a marketable product, then make it even better, cheaper, or both. Today, when the drive to invent has become a mantra, Bell Labs offers us a way to enrich our understanding of the challenges and solutions to technological innovation. Here, after all, was where the foundational ideas on the management of innovation were born. "The Idea Factory" is the story of the origins of modern communications and the beginnings of the information age a deeply human story of extraordinary men who were given extraordinary means time, space, funds, and access to one another and edged the world into a new dimension."
Fly Girls: How Five Daring Women Defied All Odds and Made Aviation History
Keith O'Brien - 2018
Thousands of fans flocked to multi‑day events, and cities vied with one another to host them. The pilots themselves were hailed as dashing heroes who cheerfully stared death in the face. Well, the men were hailed. Female pilots were more often ridiculed than praised for what the press portrayed as silly efforts to horn in on a manly, and deadly, pursuit. Fly Girls recounts how a cadre of women banded together to break the original glass ceiling: the entrenched prejudice that conspired to keep them out of the sky. O’Brien weaves together the stories of five remarkable women: Florence Klingensmith, a high‑school dropout who worked for a dry cleaner in Fargo, North Dakota; Ruth Elder, an Alabama divorcee; Amelia Earhart, the most famous, but not necessarily the most skilled; Ruth Nichols, who chafed at the constraints of her blue‑blood family’s expectations; and Louise Thaden, the mother of two young kids who got her start selling coal in Wichita. Together, they fought for the chance to race against the men — and in 1936 one of them would triumph in the toughest race of all. Like Hidden Figures and Girls of Atomic City, Fly Girls celebrates a little-known slice of history in which tenacious, trail-blazing women braved all obstacles to achieve greatness.
1177 B.C.: The Year Civilization Collapsed
Eric H. Cline - 2014
The pharaoh's army and navy defeated them, but the victory so weakened Egypt that it soon slid into decline, as did most of the surrounding civilizations. Eric Cline tells the gripping story of how the end was brought about by multiple interconnected failures, ranging from invasion and revolt to earthquakes, drought, famine, and the cutting of international trade routes. Bringing to life a vibrant multicultural world, he draws a sweeping panorama of the empires of the age and shows that it may have been their very interdependence that hastened their dramatic collapse. Now revised and updated, 1177 B.C. sheds light on the complex ties that gave rise to, and eventually destroyed, the flourishing civilizations of the Late Bronze Age--and set the stage for the emergence of classical Greece and, ultimately, our world today.
Stalling for Time: My Life as an FBI Hostage Negotiator
Gary Noesner - 2010
A right wing survivalist amasses a cache of weapons and resists calls to surrender. A drug trafficker barricades himself and his family in a railroad car, and begins shooting. A cult leader in Waco, Texas faces the FBI in an armed stand-off that leaves many dead in a fiery blaze. A sniper, claiming to be God, terrorizes the DC metropolitan area. For most of us, these are events we hear about on the news. For Gary Noesner, head of the FBI’s groundbreaking Crisis Negotiation Unit, it was just another day on the job. In Stalling for Time, Noesner takes readers on a heart-pounding tour through many of the most famous hostage crises of the past thirty years. Specially trained in non-violent confrontation and communication techniques, Noesner’s unit successfully defused many potentially volatile standoffs, but perhaps their most hard-won victory was earning the recognition and respect of their law enforcement peers.Noesner pursued his dream of joining the FBI all the way to Quantico, where he not only became a Special Agent, but also—in the course of a distinguished thirty-year career—the FBI’s Chief Negotiator. Gaining respect for the fledgling art of crisis negotiation in the hard-boiled culture of The Bureau, where the shadow of J. Edgar Hoover still loomed large, was an uphill battle, educating FBI and law enforcement leaders on the job at an incident, and advocating the use of psychology rather than force whenever possible. Noesner’s many bloodless victories rarely garnered as much media attention as the notorious incident management blunders like the Branch Davidian disaster in Waco and the Ruby Ridge tragedy.Noesner offers a candid as well as fascinating look back at his years as a rebel in the ranks and a pioneer on the front lines. Whether vividly recounting showdowns with the radical Republic of Texas militia, the terrorist hijackers of the cruise ship Achille Lauro, and self-styled messiah David Koresh, or clashes with colleagues and superiors that expose the internal politics and power-plays of America’s premier law enforcement agency, Stalling for Time crackles with breathtaking suspense and insight in equal measure. Case by case, minute by minute, it’s a behind the scenes view of a visionary crime-fighter in action.
Hello World: Being Human in the Age of Algorithms
Hannah Fry - 2018
It’s time we stand face-to-digital-face with the true powers and limitations of the algorithms that already automate important decisions in healthcare, transportation, crime, and commerce. Hello World is indispensable preparation for the moral quandaries of a world run by code, and with the unfailingly entertaining Hannah Fry as our guide, we’ll be discussing these issues long after the last page is turned.
Homicide: A Year on the Killing Streets
David Simon - 1991
Twice every three days another citizen is shot, stabbed, or bludgeoned to death. At the center of this hurricane of crime is the city's homicide unit, a small brotherhood of hard men who fight for whatever justice is possible in a deadly world.David Simon was the first reporter ever to gain unlimited access to a homicide unit, and this electrifying book tells the true story of a year on the violent streets of an American city. The narrative follows Donald Worden, a veteran investigator; Harry Edgerton, a black detective in a mostly white unit; and Tom Pellegrini, an earnest rookie who takes on the year's most difficult case, the brutal rape and murder of an eleven-year-old girl.Originally published fifteen years ago, Homicide became the basis for the acclaimed television show of the same name. This new edition--which includes a new introduction, an afterword, and photographs--revives this classic, riveting tale about the men who work on the dark side of the American experience.
A Short History of the World
Christopher Lascelles - 2011
A Short History of the World aims to fill the big gaps in our historical knowledge with a book that is easy to read and assumes little prior knowledge of past events.The book does not aim to come up with groundbreaking new theories on why things occurred, but rather gives a broad overview of the generally accepted version of events so that non-historians will feel less ignorant when discussing the past.While the book covers world history from the Big Bang to the present day, it principally covers key people, events and empires since the dawn of the first civilisations in around 3500 BC. To help readers put events, places and empires into context, the book includes 36 specially commissioned maps to accompany the text. The result is a book that is reassuringly epic in scope but refreshingly short in length. An excellent place to start to bring your historical knowledge up to scratch. Once you have read this, you will never feel exposed again!
Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World
Tom Wright - 2018
The dust had yet to settle on the global financial crisis in 2009 when an unlikely Wharton grad was setting in motion a fraud of unprecedented gall and magnitude--one that would come to symbolize the next great threat to the global financial system. Billion Dollar Whale will become a classic, harrowing parable about the financial world in the twenty-first century.
God's Bankers: A History of Money and Power at the Vatican
Gerald Posner - 2015
(The New York Times).From a master chronicler of legal and financial misconduct, a magnificent investigation nine years in the making, this book traces the political intrigue and inner workings of the Catholic Church. Decidedly not about faith, belief in God, or religious doctrine, this book is about the church's accumulation of wealth and its byzantine entanglements with financial markets across the world. Told through 200 years of prelates, bishops, cardinals, and the Popes who oversee it all, Gerald Posner uncovers an eyebrow-raising account of money and power in perhaps the most influential organization in the history of the world.God's Bankers has it all: a rare expose and an astounding saga marked by poisoned business titans, murdered prosecutors, mysterious deaths of private investigators, and questionable suicides; a carnival of characters from Popes and cardinals, financiers and mobsters, kings and prime ministers; and a set of moral and political circumstances that clarify not only the church's aims and ambitions, but reflect the larger dilemmas of the world's more recent history. And Posner even looks to the future to surmise if Pope Francis can succeed where all his predecessors failed: to overcome the resistance to change in the Vatican's Machiavellian inner court and to rein in the excesses of its seemingly uncontrollable financial quagmire. Part thriller, part financial tell-all, this book shows with extraordinary precision how the Vatican has evolved from a foundation of faith to a corporation of extreme wealth and power.
The Contrarian: Peter Thiel and Silicon Valley's Pursuit of Power
Max Chafkin - 2021
And few individuals have done more to shape Silicon Valley than Peter Thiel. The billionaire venture capitalist and entrepreneur has been a behind-the-scenes operator influencing countless aspects of our contemporary way of life, from the technologies we use every day to the delicate power balance between Silicon Valley, Wall Street, and Washington. But despite his power and the ubiquity of his projects, no public figure is quite so mysterious.In the first major biography of Thiel, Max Chafkin traces the trajectory of the innovator's singular life and worldview, from his upbringing as the child of immigrant parents and years at Stanford as a burgeoning conservative thought leader to his founding of PayPal and Palantir, early investment in Facebook and SpaceX, and relationships with fellow tech titans Mark Zuckerberg, Elon Musk, and Eric Schmidt. The Contrarian illuminates the extent to which Thiel has sought to export his values to the corridors of power beyond Silicon Valley, including funding the lawsuit that destroyed the blog Gawker and strenuously backing far-right political candidates, notably Donald Trump for president in 2016.Eye-opening and deeply reported, The Contrarian is a revelatory biography of a one-of-a-kind leader and an incisive portrait of a tech industry whose explosive growth and power is both thrilling and fraught with controversy.
The Soul of a New Machine
Tracy Kidder - 1981
Tracy Kidder got a preview of this world in the late 1970s when he observed the engineers of Data General design and build a new 32-bit minicomputer in just one year. His thoughtful, prescient book, The Soul of a New Machine, tells stories of 35-year-old "veteran" engineers hiring recent college graduates and encouraging them to work harder and faster on complex and difficult projects, exploiting the youngsters' ignorance of normal scheduling processes while engendering a new kind of work ethic.These days, we are used to the "total commitment" philosophy of managing technical creation, but Kidder was surprised and even a little alarmed at the obsessions and compulsions he found. From in-house political struggles to workers being permitted to tease management to marathon 24-hour work sessions, The Soul of a New Machine explores concepts that already seem familiar, even old-hat, less than 20 years later. Kidder plainly admires his subjects; while he admits to hopeless confusion about their work, he finds their dedication heroic. The reader wonders, though, what will become of it all, now and in the future. —Rob Lightner
We Were Soldiers Once... and Young: Ia Drang - The Battle that Changed the War in Vietnam
Harold G. Moore - 1991
Marine Corps selects one book that he believes is both relevant and timeless for reading by all Marines. The Commandant's choice for 1993 was We Were Soldiers Once . . . and Young. In November 1965, some 450 men of the 1st Battalion, 7th Cavalry, under the command of Lt. Col. Hal Moore, were dropped by helicopter into a small clearing in the Ia Drang Valley. They were immediately surrounded by 2,000 North Vietnamese soldiers. Three days later, only two and a half miles away, a sister battalion was chopped to pieces. Together, these actions at the landing zones X-Ray and Albany constituted one of the most savage and significant battles of the Vietnam War. How these men persevered--sacrificed themselves for their comrades and never gave up--makes a vivid portrait of war at its most inspiring and devastating. General Moore and Joseph Galloway, the only journalist on the ground throughout the fighting, have interviewed hundreds of men who fought there, including the North Vietnamese commanders. This devastating account rises above the specific ordeal it chronicles to present a picture of men facing the ultimate challenge, dealing with it in ways they would have found unimaginable only a few hours earlier. It reveals to us, as rarely before, man's most heroic and horrendous endeavor.
The Ratline: Love, Lies, and Justice on the Trail of a Nazi Fugitive
Philippe Sands - 2020
By the time the war ended in May 1945, he was indicted for 'mass murder'. Hunted by the Soviets, the Americans, the Poles and the British, as well as groups of Jews, Wächter went on the run. He spent three years hiding in the Austrian Alps, assisted by his wife Charlotte, before making his way to Rome where he was helped by a Vatican bishop. He remained there for three months. While preparing to travel to Argentina on the 'ratline' he died unexpectedly, in July 1949, a few days after spending a weekend with an 'old comrade'.In The Ratline Philippe Sands offers a unique account of the daily life of a senior Nazi and fugitive, and of his wife. Drawing on a remarkable archive of family letters and diaries, he unveils a fascinating insight into life before and during the war, on the run, in Rome, and into the Cold War. Eventually the door is unlocked to a mystery that haunts Wächter's youngest son, who continues to believe his father was a good man - what happened to Otto Wächter, and how did he die?
In the Beginning...Was the Command Line
Neal Stephenson - 1999
And considering that the "one man" is Neal Stephenson, "the hacker Hemingway" (Newsweek) -- acclaimed novelist, pragmatist, seer, nerd-friendly philosopher, and nationally bestselling author of groundbreaking literary works (Snow Crash, Cryptonomicon, etc., etc.) -- the word is well worth hearing. Mostly well-reasoned examination and partial rant, Stephenson's In the Beginning... was the Command Line is a thoughtful, irreverent, hilarious treatise on the cyber-culture past and present; on operating system tyrannies and downloaded popular revolutions; on the Internet, Disney World, Big Bangs, not to mention the meaning of life itself.