Risk Takers: Uses and Abuses of Financial Derivatives
Risk Takers: Uses and Abuses of Financial Derivatives
Author
John E. Marthinsen
Published Date
2008
Page Count
336
Overview
“Risk Takers: Uses and Abuses of Financial Derivatives” by John E. Marthinsen is an insightful exploration of the world of financial derivatives. The book provides an accessible introduction to derivatives, including their history, purpose, and how they work. Marthinsen also delves into the darker side of derivatives, discussing how their misuse contributed to financial crises, including the 2008 global financial meltdown.
Key Themes
- Introduction to Derivatives: Explains the basics of derivatives, their types, and their role in the financial markets.
- Benefits of Derivatives: Discusses how derivatives can be used effectively for hedging, risk management, and investment.
- Risks and Misuse: Analyzes cases where derivatives have been misused, leading to significant financial troubles and market instability.
- Regulatory and Ethical Considerations: Examines the need for proper regulation and ethical practices in the use of financial derivatives.
Historical Context
Published shortly after the 2008 financial crisis, the book provides a timely analysis of how derivatives played a role in the crisis and offers lessons for avoiding similar pitfalls in the future.
Author’s Background
John E. Marthinsen is a professor of economics and international business, with expertise in risk management and global financial markets. His academic perspective brings depth to the book’s exploration of derivatives.
Impact and Legacy
“Risk Takers” has been recognized for its balanced view of financial derivatives, offering both an introduction to their beneficial uses and a cautionary tale of their potential dangers.
Strengths and Weaknesses
Strengths: The book provides a comprehensive overview of financial derivatives, making complex topics accessible to readers without a finance background. Weaknesses: Some content may require updating to reflect developments in the derivatives market and regulatory changes since its publication.
Who Should Read This?
Ideal for students of finance, investors, and professionals looking to gain a deeper understanding of financial derivatives, as well as anyone interested in the role these instruments play in the global financial system.
Similar Books
- “All About Derivatives” by Michael Durbin: Another introduction to derivatives, focusing on how they work and how to use them.
- “The Big Short: Inside the Doomsday Machine” by Michael Lewis: Provides a narrative account of the 2008 financial crisis, with a focus on the role of derivatives.
Final Thoughts
“Risk Takers: Uses and Abuses of Financial Derivatives” is an essential read for those seeking to understand the complex world of derivatives and their impact on the global financial system.
