The Fearful Rise of Markets : A Short View of Global Bubbles and Synchronised Meltdowns

John Authers looks at how the financial world has taken shape over the last 50 years and answers key questions about how it has affect us. This book helps readers understand why everything went wrong at the same time and it will also help them understand investment strategies that may now start to work.

"Concise, relevant, and perceptive...this book should be read by all those interested in the way markets operate, be they investors, analysts, or policy makers."

-From the Foreword by Mohamed A. El-Erian, CEO and co-CIO of PIMCO, and author of When Markets Collide

"A must-read for anyone concerned about how we can avoid recurring debt-induced busts in the years ahead, or anyone who wonders how to invest if (when!) the crisis returns. Authers' insights on the global financial crisis are profound."

-Robert D. Arnott, Chairman, Research Affiliates, LLC

"In a crowded field of works on the financial crisis, Authers' work is unique in both its insight and style."

-Robert R. Johnson, Ph.D., CFA, Senior Managing Director of the CFA Institute

"John Authers has combined his journalistically honed FT skills with great insights. Serious investors and policy makers should read this book."

-David R. Kotok, Chairman and Chief Investment Officer of Cumberland Advisors

"John masterfully drives a stake through the myth of global economic decoupling one chapter and example at a time. A must-read in today's economy."

-Vitaliy Katsenelson, Director of Research at Investment Management Associates, Inc, author of Active Value Investing: Making Money in Range-Bound Markets

Award-winning Financial Times journalist John Authers explains the multiple roots of repeated financial crises. He explains why it is that investment bubbles now form all at once, all across the world and why so many markets that were once considered disconnected are now able to collapse all at the same time. He offers a strategy for preventing future financial disasters.

Market bubbles are growing ever bigger, ever more terrifying. As soon as one ends, the next one seems already to be inflating.

Multiple markets, once disconnected, are aligning in ways that are increasingly unpredictable and uncontrollable.

Something has changed. What can we do about it?

The Fearful Rise of Markets explains how the world's markets became synchronised, how they formed a bubble, how they all managed to crash together and then rebound together, and what can be done to prevent another synchronised bust in future.

From post-Depression regulation and the 1954 recovery from the Great Crash, through the innovations and mis-steps that led to the collapse of Lehman Brothers in 2008, to the markets rally of 2009, The Fearful Rise of Markets details massive shifts in the way our money is invested, and in the global balance of economic power.

“Concise, relevant, and perceptive this book should be read by all those interested in the way markets operate, be they investors, analysts, or policy makers.'-From the Foreword by Mohamed A. El-Erian, CEO and co-CIO of PIMCO, and author of When Markets Collide “A must-read for anyone concerned about how we can avoid recurring debt-induced busts in the years ahead, or anyone who wonders how to invest if (when!) the crisis returns. Authers'insights on the global financial crisis are profound.'-Robert D. Arnott, Chairman, Research Affiliates, LLC ”In a crowded field of works on the financial crisis, Authers'work is unique in both its insight and style.'-Robert R. Johnson, Ph.D., CFA, Senior Managing Director of the CFA Institute'John Authers has combined his journalistically honed FT skills with great insights. Serious investors and policy makers should read this book.” -David R. Kotok, Chairman and Chief Investment Officer of Cumberland Advisors'John masterfully drives a stake through the myth of global economic decoupling one chapter and example at a time. A must-read in today's economy.'-Vitaliy Katsenelson, Director of Research at Investment Management Associates, Inc, author of Active Value Investing: Making Money in Range-Bound Markets Award-winning Financial Times journalist John Authers explains the multiple roots of repeated financial crises. He explains why it is that investment bubbles now form all at once, all across the world and why so many markets that were once considered disconnected are now able to collapse all at the same time. He offers a strategy for preventing future financial disasters. Market bubbles are growing ever bigger, ever more terrifying. As soon as one ends, the next one seems already to be inflating. Multiple markets, once disconnected, are aligning in ways that are increasingly unpredictable and uncontrollable. Something has changed. What can we do about it? The Fearful Rise of Markets explains how the world’s markets became synchronised, how they formed a bubble, how they all managed to crash together and then rebound together, and what can be done to prevent another synchronised bust in future. From post-Depression regulation and the 1954 recovery from the Great Crash, through the innovations and mis-steps that led to the collapse of Lehman Brothers in 2008, to the markets rally of 2009, The Fearful Rise of Markets details massive shifts in the way our money is invested, and in the global balance of economic power. "Concise, relevant, and perceptive...this book should be read by all those interested in the way markets operate, be they investors, analysts, or policy makers." -From the Foreword by Mohamed A. El-Erian, CEO and co-CIO of PIMCO, and author of When Markets Collide "A must-read for anyone concerned about how we can avoid recurring debt-induced busts in the years ahead, or anyone who wonders how to invest if (when!) the crisis returns. Authers' insights on the global financial crisis are profound." -Robert D. Arnott, Chairman, Research Affiliates, LLC "In a crowded field of works on the financial crisis, Authers' work is unique in both its insight and style." -Robert R. Johnson, Ph.D., CFA, Senior Managing Director of the CFA Institute "John Authers has combined his journalistically honed FT skills with great insights. Serious investors and policy makers should read this book." -David R. Kotok, Chairman and Chief Investment Officer of Cumberland Advisors "John masterfully drives a stake through the myth of global economic decoupling one chapter and example at a time. A must-read in today's economy." -Vitaliy Katsenelson, Director of Research at Investment Management Associates, Inc, author of Active Value Making Money in Range-Bound Markets Award-winning Financial Times journalist John Authers explains the multiple roots of repeated financial crises. He explains why it is that investment bubbles now form all at once, all across the world and why so many markets that were once considered disconnected are now able to collapse all at the same time. He offers a strategy for preventing future financial disasters. Market bubbles are growing ever bigger, ever more terrifying. As soon as one ends, the next one seems already to be inflating. Multiple markets, once disconnected, are aligning in ways that are increasingly unpredictable and uncontrollable. Something has changed. What can we do about it? The Fearful Rise of Markets explains how the world's markets became synchronised, how they formed a bubble, how they all managed to crash together and then rebound together, and what can be done to prevent another synchronised bust in future. From post-Depression regulation and the 1954 recovery from the Great Crash, through the innovations and mis-steps that led to the collapse of Lehman Brothers in 2008, to the markets rally of 2009, The Fearful Rise of Markets details massive shifts in the way our money is invested, and in the global balance of economic power. Cover......Page 1 The Fearful Rise of Markets......Page 2 Contents......Page 8 Acknowledgements......Page 10 About the Author......Page 12 Foreword......Page 14 The Fearful Rise of Markets: A Timeline......Page 18 Introduction......Page 24 Part 1 The Rise......Page 30 Investment Becomes an Industry......Page 32 Indexes and Efficient Markets......Page 39 Money Markets Supplant Banks......Page 46 From Gold Standard to Oil Standard......Page 52 Emerging Markets......Page 59 Junk Bonds......Page 67 The Carry Trade......Page 73 Foreign Exchange......Page 80 Irrational Exuberance......Page 86 Banks Too Big to Fail......Page 92 Hedge Funds......Page 98 Dot Coms and Cheap Money......Page 104 BRICs......Page 111 Commodities......Page 118 Credit......Page 126 Part 2 The Fall......Page 132 Ending the Great Moderation......Page 134 Quant Funds......Page 141 Trust......Page 146 Bank Runs......Page 153 Bastille Day: Reflexive Markets......Page 158 Lessons from Lehman......Page 165 Politics and Institutions......Page 170 The Paradox of Diversification......Page 174 Part 3 The Fearful Rise......Page 180 Decoupling......Page 182 Banks Bounce......Page 190 A New Bubble?......Page 196 Conclusion......Page 205 Notes......Page 211 Select Bibliography......Page 226 #X93;Concise, relevant, and perceptive#x85;this book should be read by all those interested in the way markets operate, be they investors, analysts, or policy makers.""--The Foreword by Mohamed A. El-Erian, CEO and co-CIO of PIMCO, and author of When Markets Collide #x93;A must-read for anyone concerned about how we can avoid recurring debt-induced busts in the years ahead, or anyone who wonders how to invest if (when!) the crisis returns. Authers' insights on the global financial crisis are profound.""-Robert D. Arnott, Chairman, Research Affiliates, LLC #x94;In a crowded field of works on the financial