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Too Smart for Our Own Good: Ingenious Investment Strategies, Illusions of Safety, and Market CrashesHow investment strategies designed to reduce risk can increase risk for everyone and can crash markets and economies Financial crises are often blamed on unforeseeable events, the unforgiving nature of capital markets, or just plain bad luck. Too Smart for Our Own Good argues that these crises are caused by certain alluring investment strategies that promise both high returns and safety of capital. In other words, the severe and widespread crises we
How investment strategies designed to reduce risk can increase risk for everyone--and can crash markets and economiesFinancial crises are often blamed on unforeseeable events, the unforgiving nature of capital markets, or just plain bad luck. Too Smart for Our Own Good argues that these crises are caused by certain alluring investment strategies that promise both high returns and safety of capital. In other words, the severe and widespread crises we have suffered in recent decades were not perfect storms. Instead, they were made by us. By understanding how and why this is so, we may be able to avoid or ameliorate future crises--and maybe even anticipate them.
One of today's leading financial thinkers, Bruce I. Jacobs, examines recent financial crises--including the 1987 stock market crash, the 1998 collapse of the hedge fund Long-Term Capital Management, the 2007-2008 credit crisis, and the European debt crisis--and reveals the common threads that explain these market disruptions. In each case, investors in search of safety were drawn to novel strategies that were intended to reduce risk but actually magnified it--and blew up markets. Too Smart for Our Own Good takes a behind-the-curtain look at:
-The inseparable nature of investment risk and reward and the often counterproductive effects of some popular approaches for reducing risk-A trading strategy known as portfolio insurance and the key role it played in the 1987 stock market crash-How option-related trading disrupted markets in the decade following the 1987 crash-Why the demise of Long-Term Capital Management in 1998 wreaked havoc on US stock and bond markets -How mortgage-backed financial products, by shifting risk from one party to another, created the credit crisis of 2007-2008 and contributed to the subsequent European debt crisis
This broad, detailed investigation of financial crises is the most penetrating and objective look at the subject to date. In addition, Jacobs, an industry insider, offers invaluable insights into the nature of investment risk and reward, and how to manage risk.
Risk is unavoidable--especially in investing--and financial markets connect us all. Until we accept these facts and manage risk in responsible ways, major crises will always be just around the bend. Too Smart for Our Own Good is a big step toward smarter investing--and a better financial future for everyone.
Binding Type: Hardcover
Publisher: McGraw-Hill Education
Published: 12/05/2018
ISBN: 9781260440546
Pages: 464
Weight: 1.55lbs
Size: 9.10h x 6.00w x 1.70d
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★★★★★ 4
Excellent quality for an excellent price tag
Color: Blue, Size: Medium
The suit arrived in 2 days after ordering; it arrived in excellent condition, was wrapped in clear plastic, however it was only in one package and should have been wrapped in a second layer in case of accidentally opening during the shipping process.
The suit was folded very neatly, I'll keep it as is as it's a gift for a friend of mine who is a musician and he will use it for
performance on stage. The size was M and correct. Unfortunately, it has arrived in the wrong color, I ordered blue, and purple has been delivered.
I hope, he likes it anyway. I'll keep it as it is too inconvenient for me to exchange it and ship it back to the sender.
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Reviewed in the United States on August 16, 2025
★★★★★ 5
Beautiful suit
Color: Purple, Size: Small
Suit is better than I expected. Bought this for my son for prom. The sequins POP. I am highly satisfied with this purchase. My son is 5'6 about 130 lbs and I ordered a size XS and it fit perfect. The only complaint I have is there is a hole for a button but no button is attached to the suit. Besides that, GET IT.
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Reviewed in the United States on April 9, 2026
★★★★★ 5
Great suit
Color: Purple, Size: X-Small
Fit my husband perfectly for our friends wedding and it was comfortable. It doesn't get wrinkled fast if at all. The quality was not bad for the price.
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Reviewed in the United States on January 14, 2026
★★★★★ 1
Sent Used suit
Color: Gold, Size: Medium
Sent a used smelly suit! Body odor bad on arm pits and cologne smell.
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Reviewed in the United States on April 21, 2026
★★★★★ 5
Great product and Great seller!
Color: White/White Pants, Size: Medium
The suit it self was gorgeous! But the best thing was the great customer service from this seller. They message you, ask for your size to ensure you get the right suit size
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Reviewed in the United States on March 13, 2026