Written not from a post-crisis perspective – but from a preventative point of view – this book traces the development of financial derivatives from bonds to credit default swaps, and shows how mathematical formulas went beyond pricing to expand their use to the point where they dwarfed the real economy. You'll learn how the deadly allure of their ice-cold beauty has misled generations of economists and investors, and how continued reliance on these formulas can either assist future economic development, or send the global economy into the financial equivalent of a cardiac arrest. Rather than rehash tales of post-crisis fallout, this book focuses on preventing the next one. By exploring the heart of the shadow economy, you'll be better prepared to ride the rough waves of finance into the turbulent future. Delve into one of the world's least-understood but highest-impact industries Understand the key principles of quantitative finance and the evolution of the field Learn what quantitative finance has become, and how it affects us all Discover how the industry's next steps dictate the economy's future How do you create a quadrillion dollars out of nothing, blow it away and leave a hole so large that even years of "quantitative easing" can't fill it – and then go back to doing the same thing? Even amidst global recovery, the financial system still has the potential to seize up at any moment. The Money Formula explores the how and why of financial disaster, what must happen to prevent the next one.

    Is there some way we can get our minds around these disparate global upheavals, to grasp these events and their interconnections, and place our turbulent world in a more understandable light? Acclaimed author Harm de Blij answers this question with one word: geography.In this revised edition of the immensely popular and influential Why Geography Matters, de Blij tackles topics from the burgeoning presence of China to the troubling disarray of the European Union, from the dangerous nuclear ambitions of North Korea to the revolutionary Arab Spring. By improving our understanding of the world's geography, de Blij shows, we can better respond to the events around us, and better prepare ourselves to face the global challenges ahead. Peppering his writing with anecdotes from his own professional travels, de Blij expands upon his original argument, offering an updated work that is as engaging as it is eye-opening. Casual students of geography and professional policy-makers alike will benefit from this stimulating and crucial perspective on geography and the way it shapes our world's events.America, de Blij warns, has become the world's most geographically illiterate society of consequence. Indeed, despite increasing global interconnectivity and rapid change, Americans seem to be less informed and less knowledgeable about the rest of the world than ever. In this compelling volume, de Blij shows why this dispiriting picture must change, and change now.

    To Mayor Bloomberg and Carl Pope, it's clear that to treat climate change as either a lost cause or a non-issue is the wrong approach. Global leaders are stymied by the enormity of the doom-and-gloom scenarios. So what happens when you tell leaders that they can definitely—right now, this year—reduce the number of children who have asthma attacks, save thousands of Americans from dying of respiratory disease, cut energy bills, increase the security of our energy supply, make it easier for everyone to get around town, increase the number of jobs in their community—all while increasing the long-term stability of the global climate? That is actionable. That future is within our grasp.The changing climate should be seen as a series of discreet, manageable problems that should be attacked from all angles, each with a solution that can make our society healthier and our economy stronger. In these times, when it's less and less clear if the federal government will be willing to tackle climate change, Bloomberg and Pope lay out a powerfully persuasive argument about how cities can play an outsize role in fighting and reversing the dangerous effects of a warming planet. Together they lay out the economic and personal health reasons for businesses and individual citizens to support climate change action plans.

    With almost 200 million people, a 500,000-man army, nuclear weapons, and a large diaspora in Britain and North America, Pakistan is central to the hopes of jihadis and the fears of their enemies. Yet the greatest short-term threat to Pakistan is not Islamist insurgency as such, but the actions of the United States, and the greatest long-term threat is ecological change. Anatol Lieven's book is a magisterial investigation of this highly complex and often poorly understood country: its regions, ethnicities, competing religious traditions, varied social landscapes, deep political tensions, and historical patterns of violence; but also its surprising underlying stability, rooted in kinship, patronage, and the power of entrenched local elites. Engagingly written, combining history and profound analysis with reportage from Lieven's extensive travels as a journalist and academic, Pakistan: A Hard Country is both utterly compelling and deeply revealing.

    Schumacher's riveting, richly researched statement on sustainability has become more relevant and vital with each year since its initial groundbreaking publication during the 1973 energy crisis. A landmark statement against "bigger is better" industrialism, Schumacher's Small Is Beautiful paved the way for twenty-first century books on environmentalism and economics, like Jeffrey Sachs's The End of Poverty, Paul Hawken's Natural Capitalism, Mohammad Yunis's Banker to the Poor, and Bill McKibben's Deep Economy. This timely reissue offers a crucial message for the modern world struggling to balance economic growth with the human costs of globalization.

    Bear Stearns was about to announce profits of $115 million for the first quarter of 2008, had $17.3 billion in cash on hand, and, as the company incessantly boasted, had been a colossally profitable enterprise in the eighty-five years since its founding.Ten days later, Bear Stearns no longer existed, and the calamitous financial meltdown of 2008 had begun.How this happened – and why – is the subject of William D. Cohan’s superb and shocking narrative that chronicles the fall of Bear Stearns and the end of the Second Gilded Age on Wall Street. Bear Stearns serves as the Rosetta Stone to explain how a combination of risky bets, corporate political infighting, lax government regulations and truly bad decision-making wrought havoc on the world financial system.Cohan’s minute-by-minute account of those ten days in March makes for breathless reading, as the bankers at Bear Stearns struggled to contain the cascading series of events that would doom the firm, and as Treasury Secretary Henry Paulson, New York Federal Reserve Bank President Tim Geithner, and Fed Chairman Ben Bernanke began to realize the dire consequences for the world economy should the company go bankrupt. But HOUSE OF CARDS does more than recount the incredible panic of the first stages of the financial meltdown. William D. Cohan beautifully demonstrates why the seemingly invincible Wall Street money machine came crashing down. He chronicles the swashbuckling corporate culture of Bear Stearns, the strangely crucial role competitive bridge played in the company’s fortunes, the brutal internecine battles for power, and the deadly combination of greed and inattention that helps to explain why the company’s leaders ignored the danger lurking in Bear’s huge positions in mortgage-backed securities.The author deftly portrays larger-than-life personalities like Ace Greenberg, Bear Stearns’ miserly, take-no-prisoners chairman whose memos about re-using paper clips were legendary throughout Wall Street; his profane, colorful rival and eventual heir Jimmy Cayne, whose world-champion-level bridge skills were a lever in his corporate rise and became a symbol of the reasons for the firm’s demise; and Jamie Dimon, the blunt-talking CEO of JPMorgan Chase, who won the astonishing endgame of the saga (the Bear Stearns headquarters alone were worth more than JP Morgan paid for the whole company). Cohan’s explanation of seemingly arcane subjects like credit default swaps and fixed- income securities is masterful and crystal clear, but it is the high-end dish and powerful narrative drive that makes HOUSE OF CARDS an irresistible read on a par with classics such as LIAR’S POKER and BARBARIANS AT THE GATE.Written with the novelistic verve and insider knowledge that made THE LAST TYCOONS a bestseller and a prize-winner, HOUSE OF CARDS is a chilling cautionary tale about greed, arrogance, and stupidity in the financial world, and the consequences for all of us.

    Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations--a lost decade for China, the breaking of the Euro, and a receding of the U.S. dollar--that will have long-lasting effects.Pettis explains how China has maintained massive--but unsustainable--investment growth by artificially lowering the cost of capital. He discusses how Germany is endangering the Euro by favoring its own development at the expense of its neighbors. And he looks at how the U.S. dollar's role as the world's reserve currency burdens America's economy. Although various imbalances may seem unrelated, Pettis shows that all of them--including the U.S. consumption binge, surging debt in Europe, China's investment orgy, Japan's long stagnation, and the commodity boom in Latin America--are closely tied together, and that it will be impossible to resolve any issue without forcing a resolution for all.Demonstrating how economic policies can carry negative repercussions the world over, The Great Rebalancing sheds urgent light on our globally linked economic future.