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.

Liberal Fascism: The Secret History of the American Left from Mussolini to the Politics of Meaning


Jonah Goldberg - 2007
    Calling someone a fascist is the fastest way to shut them up, defining their views as beyond the political pale. But who are the real fascists in our midst? Liberal Fascism offers a startling new perspective on the theories and practices that define fascist politics. Replacing conveniently manufactured myths with surprising and enlightening research, Jonah Goldberg reminds us that the original fascists were really on the left, and that liberals from Woodrow Wilson to FDR to Hillary Clinton have advocated policies and principles remarkably similar to those of Hitler's National Socialism and Mussolini's Fascism. Contrary to what most people think, the Nazis were ardent socialists (hence the term -National socialism-). They believed in free health care and guaranteed jobs. They confiscated inherited wealth and spent vast sums on public education. They purged the church from public policy, promoted a new form of pagan spirituality, and inserted the authority of the state into every nook and cranny of daily life. The Nazis declared war on smoking, supported abortion, euthanasia, and gun control. They loathed the free market, provided generous pensions for the elderly, and maintained a strict racial quota system in their universities--where campus speech codes were all the rage. The Nazis led the world in organic farming and alternative medicine. Hitler was a strict vegetarian, and Himmler was an animal rights activist. Do these striking parallels mean that today's liberals are genocidal maniacs, intent on conquering the world and imposing a new racial order? Not at all. Yet it is hard to deny that modern progressivism and classical fascism shared the same intellectual roots. We often forget, for example, that Mussolini and Hitler had many admirers in the United States. W.E.B. Du Bois was inspired by Hitler's Germany, and Irving Berlin praised Mussolini in song. Many fascist tenets were espoused by American progressives like John Dewey and Woodrow Wilson, and FDR incorporated fascist policies in the New Deal. Fascism was an international movement that appeared in different forms in different countries, depending on the vagaries of national culture and temperament. In Germany, fascism appeared as genocidal racist nationalism. In America, it took a -friendlier, - more liberal form. The modern heirs of this -friendly fascist- tradition include the New York Times, the Democratic Party, the Ivy League professoriate, and the liberals of Hollywood. The quintessential Liberal Fascist isn't an SS storm trooper; it is a female grade school teacher with an education degree from Brown or Swarthmore. These assertions may sound strange to modern ears, but that is because we have forgotten what fascism is. In this angry, funny, smart, contentious book, Jonah Goldberg turns our preconceptions inside out and shows us the true meaning of Liberal Fascism.

Impeachment: An American History


Jeffrey A. Engel - 2018
    Designed to check tyrants or defend the nation from a commander-in-chief who refuses to do so, the process of impeachment outlined in the Constitution is what Thomas Jefferson called "the most formidable weapon for the purpose of a dominant faction that was ever contrived." It nullifies the will of voters, the basic foundation of legitimacy for all representative democracies. Only three times has a president's conduct led to such political disarray as to warrant his potential removal from office, transforming a political crisis into a constitutional one. None has yet succeeded. Andrew Johnson was impeached in 1868 for failing to kowtow to congressional leaders--and in a large sense, for failing to be Abraham Lincoln--yet survived his Senate trial. Richard Nixon resigned in July of 1974 after the House Judiciary Committee approved three articles of impeachment for lying, obstructing justice, and employing his executive power for personal and political gain. Bill Clinton had an affair with a White House intern, but in 1999 faced trial in the Senate less for that prurient act than for lying under oath about it.In the first book to consider these three presidents alone, and the one thing they have in common, Jeffrey Engel, Jon Meacham, Timothy Naftali, and Peter Baker explain that the basis and process of impeachment is more political than it is a legal verdict. The Constitution states that the president, "shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors," leaving room for historical precedent and the temperament of the time to weigh heavily on each case. These three cases highlight factors beyond the president's behavior that impact the likelihood and outcome of an impeachment: the president's relationship with Congress, the power and resilience of the office itself, and the polarization of the moment. This is a realist, rather than hypothetical, view of impeachment that looks to history for clues about its future--with one obvious candidate in mind.

Ten Lessons for a Post-Pandemic World


Fareed Zakaria - 2020
    CNN host and best-selling author Fareed Zakaria helps readers to understand the nature of a post-pandemic world: the political, social, technological, and economic impacts that may take years to unfold.In the form of ten straightforward “lessons,” covering topics from globalization and threat-preparedness to inequality and technological advancement, Zakaria creates a structure for readers to begin thinking beyond the immediate impacts of COVID-19. Ten Lessons for a Post-Pandemic World speaks to past, present, and future, and, while urgent and timely, is sure to become an enduring staple.

The Rule of Nobody: Saving America from Dead Laws and Broken Government


Philip K. Howard - 2014
    But hidden underneath is something bigger and more destructive. It’s a broken governing system. From that comes wasteful government, rising debt, failing schools, expensive health care, and economic hardship.Rules have replaced leadership in America. Bureaucracy, regulation, and outmoded law tie our hands and confine policy choices. Nobody asks, “What’s the right thing to do here?” Instead, they wonder, “What does the rule book say?”There’s a fatal flaw in America’s governing system—trying to decree correctness through rigid laws will never work. Public paralysis is the inevitable result of the steady accretion of detailed rules. America is now run by dead people—by political leaders from the past who enacted mandatory programs that churn ahead regardless of waste, irrelevance, or new priorities.America needs to radically simplify its operating system and give people—officials and citizens alike—the freedom to be practical. Rules can’t accomplish our goals. Only humans can get things done.In The Rule of Nobody Philip K. Howard argues for a return to the framers’ vision of public law—setting goals and boundaries, not dictating daily choices. This incendiary book explains how America went wrong and offers a guide for how to liberate human ingenuity to meet the challenges of this century.

Playing with Fire: The 1968 Election and the Transformation of American Politics


Lawrence O'Donnell - 2017
    Long before Lawrence O'Donnell was the anchor of his own political talk show, he was the Harvard Law-trained political aide to Senator Patrick Moynihan, one of postwar America's wisest political minds. The 1968 election was O'Donnell's own political coming of age, and Playing With Fire represents his master class in American electioneering, as well as an extraordinary human drama that captures a system, and a country, coming apart at the seams in real time. Nothing went to script. LBJ was confident he'd dispatch with Nixon, the GOP frontrunner; Johnson's greatest fear and real nemesis was RFK. But Kennedy and his team, despite their loathing of the president, weren't prepared to challenge their own party's incumbent. Then, out of nowhere, Eugene McCarthy shocked everyone with his disloyalty and threw his hat in the ring. A revolution seemed to be taking place, and LBJ, humiliated and bitter, began to look mortal. Then RFK leapt in, and all hell broke loose. Two assassinations and a week of bloody riots in Chicago around the Democratic Convention later, and the old Democratic Party was a smoldering ruin, and, in the last triumph of old machine politics, Hubert Humphrey stood alone in the wreckage. Suddenly Nixon was the frontrunner, having masterfully maintained a smooth facade behind which he feverishly held his party's right and left wings in the fold through a succession of ruthless maneuvers to see off George Romney, Nelson Rockefeller, Ronald Reagan, and the great outside threat to his new Southern Strategy, the arch-segregationist George Wallace. But then, amazingly, Humphrey began to close, and so, in late October, Nixon pulled off one of the greatest dirty tricks in American political history, an act that may well meet the statutory definition of treason. The tone was set for Watergate and all else that was to follow, all the way through to today.

Plutocrats: The Rise of the New Global Super Rich and the Fall of Everyone Else


Chrystia Freeland - 2012
    Forget the 1%; it's the wealthiest .01% who are fast outpacing the rest of us. Today's colossal fortunes are amassed by the diligent toiling of smart, perceptive businessmen who see themselves as deserving victors in a cutthroat international competition.  Cracking open this tight-knit world is Chrystia Freeland, an acclaimed business journalist. At ease in Davos or Dubai, Freeland has reported on the lives and minds of these new super-elites for nearly a decade. Grounding her interviews in the economics and history of modern capitalism, she provides examples of the new wealth and its consequences. She showcases the $3 million birthday party of a New York financier months before the financial meltdown; details the closed-door 2005 SEC meeting where the US government allowed investment banks to write their own regulatory laws; and tells how the Bank of Canada's Mark Carney became a key figure in the central battle between the plutocracy and the rest of us.  Brightly written and powerfully researched, Freeland's Plutocrats will be a lightning rod event in the midst of the US election season.

Rise of the Warrior Cop: The Militarization of America's Police Forces


Radley Balko - 2013
    As a result, our country has generally worked to keep the military out of law enforcement. But according to investigative reporter Radley Balko, over the last several decades, America’s cops have increasingly come to resemble ground troops. The consequences have been dire: the home is no longer a place of sanctuary, the Fourth Amendment has been gutted, and police today have been conditioned to see the citizens they serve as an other—an enemy.Today’s armored-up policemen are a far cry from the constables of early America. The unrest of the 1960s brought about the invention of the SWAT unit—which in turn led to the debut of military tactics in the ranks of police officers. Nixon’s War on Drugs, Reagan’s War on Poverty, Clinton’s COPS program, the post–9/11 security state under Bush and Obama: by degrees, each of these innovations expanded and empowered police forces, always at the expense of civil liberties. And these are just four among a slew of reckless programs.In Rise of the Warrior Cop, Balko shows how politicians’ ill-considered policies and relentless declarations of war against vague enemies like crime, drugs, and terror have blurred the distinction between cop and soldier. His fascinating, frightening narrative shows how over a generation, a creeping battlefield mentality has isolated and alienated American police officers and put them on a collision course with the values of a free society.

DemoCRIPS and ReBLOODlicans: No More Gangs in Government


Jesse Ventura - 2012
    He attacks Democrats. He attacks Republications. He speaks truth to power!Let Jesse Ventura explain the untold truth about how corporations have bought the American electoral and legislative process through the power of lobbyists, campaign contributions, and political action committees.Using historical details, such as the development of the two-party system and the advent of third-party candidates throughout U.S. history, DemoCRIPS and ReBLOODlicans exposes how the two major parties have allowed corporations, businesses, and politically-motivated wealthy individuals to manipulate elections, bribe elected officials, and silence the average American voter. Exposing the ineptitude and gang-like mentalities of both parties, Ventura advocates the replacement of the two-party system with a no-party system based on the ideals of our Founding Fathers. As election time rolls around, this is most certainly the book that should be looked at for reforming our electoral system.

Shortest Way Home: One Mayor's Challenge and a Model for America's Future


Pete Buttigieg - 2019
    With soaring prose that celebrates a resurgent American Midwest, Shortest Way Home narrates the heroic transformation of a “dying city” (Newsweek) into nothing less than a shining model of urban reinvention.Interweaving two narratives—that of a young man coming of age and a town regaining its economic vitality—Buttigieg recounts growing up in a Rust Belt city, amid decayed factory buildings and the steady soundtrack of rumbling freight trains passing through on their long journey to Chicagoland. Inspired by John F. Kennedy’s legacy, Buttigieg first left northern Indiana for red-bricked Harvard and then studied at Oxford as a Rhodes Scholar, before joining McKinsey, where he trained as a consultant—becoming, of all things, an expert in grocery pricing. Then, Buttigieg defied the expectations that came with his pedigree, choosing to return home to Indiana and responding to the ultimate challenge of how to revive a once-great industrial city and help steer its future in the twenty-first century.Elected at twenty-nine as the nation’s youngest mayor, Pete Buttigieg immediately recognized that “great cities, and even great nations, are built through attention to the everyday.” As Shortest Way Home recalls, the challenges were daunting—whether confronting gun violence, renaming a street in honor of Martin Luther King Jr., or attracting tech companies to a city that had appealed more to junk bond scavengers than serious investors. None of this is underscored more than Buttigieg’s audacious campaign to reclaim 1,000 houses, many of them abandoned, in 1,000 days and then, even as a sitting mayor, deploying to serve in Afghanistan as a Navy officer. Yet the most personal challenge still awaited Buttigieg, who came out in a South Bend Tribune editorial, just before being reelected with 78 percent of the vote, and then finding Chasten Glezman, a middle-school teacher, who would become his partner for life.While Washington reels with scandal, Shortest Way Home, with its graceful, often humorous, language, challenges our perception of the typical American politician. In chronicling two once-unthinkable stories—that of an Afghanistan veteran who came out and found love and acceptance, all while in office, and that of a revitalized Rust Belt city no longer regarded as “flyover country”—Buttigieg provides a new vision for America’s shortest way home.

Fall and Rise: The Story of 9/11


Mitchell Zuckoff - 2019
    Masterfully weaving together multiple strands of the events in New York; at the Pentagon; and in Shanksville, Pennsylvania, Fall and Rise is a mesmerizing, minute-by-minute account of that terrible day.In the days and months after 9/11, Mitchell Zuckoff, then a reporter for the Boston Globe, wrote about the attacks, the victims, and their families. After additional years of meticulous reporting, Zuckoff has filled Fall and Rise with voices of the lost and the saved. The result is an utterly gripping book filled with intimate stories of people most affected by the events of that sunny Tuesday in September: an out-of-work actor stuck in an elevator in the North Tower of the World Trade Center; the heroes aboard Flight 93 deciding to take action; a veteran trapped in the inferno in the Pentagon; the fire chief among the first on the scene in sleepy Shanksville; a team of firefighters racing to save an injured woman and themselves; and the men, women, and children flying across the country who suddenly faced terrorists bent on murder.Fall and Rise will open new avenues of understanding for everyone who thinks they know the story of 9/11, bringing to life—and in some cases, bringing back to life—the extraordinary ordinary people who experienced the worst day in modern American history.

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty


Abhijit V. Banerjee - 2011
    But much of their work is based on assumptions that are untested generalizations at best, harmful misperceptions at worst.Abhijit Banerjee and Esther Duflo have pioneered the use of randomized control trials in development economics. Work based on these principles, supervised by the Poverty Action Lab, is being carried out in dozens of countries. Drawing on this and their 15 years of research from Chile to India, Kenya to Indonesia, they have identified wholly new aspects of the behavior of poor people, their needs, and the way that aid or financial investment can affect their lives. Their work defies certain presumptions: that microfinance is a cure-all, that schooling equals learning, that poverty at the level of 99 cents a day is just a more extreme version of the experience any of us have when our income falls uncomfortably low.This important book illuminates how the poor live, and offers all of us an opportunity to think of a world beyond poverty.Learn more at www.pooreconomics.com

From Cold War to Hot Peace: The Inside Story of Russia and America


Michael McFaul - 2018
    ambassador to Russia during the Obama administration, a revelatory, inside account of U.S.-Russia relations from 1989 to the presentIn 2008, when Michael McFaul was asked to leave his perch at Stanford and join an unlikely presidential campaign, he had no idea that he would find himself at the beating heart of one of today’s most contentious and consequential international relationships. As President Barack Obama’s adviser on Russian affairs, McFaul helped craft the United States’ policy known as “reset” that fostered new and unprecedented collaboration between the two countries. And then, as U.S. ambassador to Russia from 2012 to 2014, he had a front-row seat when this fleeting, hopeful moment crumbled with Vladimir Putin’s return to the presidency. This riveting inside account combines history and memoir to tell the full story of U.S.-Russia relations from the fall of the Soviet Union to the new rise of the hostile, paranoid Russian president. From the first days of McFaul’s ambassadorship, the Kremlin actively sought to discredit and undermine him, hassling him with tactics that included dispatching protesters to his front gates, slandering him on state media, and tightly surveilling him, his staff, and his family.From Cold War to Hot Peace is an essential account of the most consequential global confrontation of our time.

Grand Pursuit: A History of Economic Genius


Sylvia Nasar - 2011
    It’s the epic story of the making of modern economics, and of how economics rescued mankind from squalor and deprivation by placing its material fate in its own hands rather than in Fate. Nasar’s account begins with Charles Dickens and Henry Mayhew observing and publishing the condition of the poor majority in mid-nineteenth-century London, the richest and most glittering place in the world. This was a new pursuit. She describes the often heroic efforts of Marx, Engels, Alfred Marshall, Beatrice and Sydney Webb, and the American Irving Fisher to put those insights into action—with revolutionary consequences for the world. From the great John Maynard Keynes to Schumpeter, Hayek, Keynes’s disciple Joan Robinson, the influential American economists Paul Samuelson and Milton Freedman, and India’s Nobel Prize winner Amartya Sen, she shows how the insights of these activist thinkers transformed the world—from one city, London, to the developed nations in Europe and America, and now to the entire planet. In Nasar’s dramatic narrative of these discoverers we witness men and women responding to personal crises, world wars, revolutions, economic upheavals, and each other’s ideas to turn back Malthus and transform the dismal science into a triumph over mankind’s hitherto age-old destiny of misery and early death. This idea, unimaginable less than 200 years ago, is a story of trial and error, but ultimately transcendent, as it is rendered here in a stunning and moving narrative.

The Men Who Stare at Goats


Jon Ronson - 2004
    Army. Defying all known accepted military practice -- and indeed, the laws of physics -- they believed that a soldier could adopt a cloak of invisibility, pass cleanly through walls, and, perhaps most chillingly, kill goats just by staring at them. Entrusted with defending America from all known adversaries, they were the First Earth Battalion. And they really weren't joking. What's more, they're back and fighting the War on Terror. With firsthand access to the leading players in the story, Ronson traces the evolution of these bizarre activities over the past three decades and shows how they are alive today within the U.S. Department of Homeland Security and in postwar Iraq. Why are they blasting Iraqi prisoners of war with the theme tune to Barney the Purple Dinosaur? Why have 100 debleated goats been secretly placed inside the Special Forces Command Center at Fort Bragg, North Carolina? How was the U.S. military associated with the mysterious mass suicide of a strange cult from San Diego? The Men Who Stare at Goats answers these and many more questions.