Dinosaur Derivatives and Other Trades

225 Pages·2015·0.9 MB·English

by  Jeremy Josse

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“[Josse’s]explorationofthephilosophicalDNAofconceptsofrisk,value,
contracts,fraud,andfinancewritlargestartslikeanitchthatwon’tgoaway
andneedsscratching,eachvignetteandchapterpullingthereaderinmore
deeplyintoadiscussionoftheevolutionoffinancethatInowfindimportant
and fascinating—thanks to this book.”
Steve Clemons
Editor at Large, The Atlantic
“A compelling, interdisciplinary journey into the arcane world of finance.
Josse takes a dry topic and through modern day stories and historical
referencesdeftlyeducatesandentertains.Eachtopicisintricatelyanalyzed
and then all the thoughts are threaded into a coherent and unique
perspective and understanding of finance as both a science and reflection
of underlying societal norms. I strongly recommend this book to practi-
tioners and students who wish to understand finance in the context of
global business and its impact on society.”
Bruce R. Magid
Dean International Business School
Brandeis University
“JeremyJosse’sbooktakesyouonawildride—fromDinosaurstoJoseph’s
dream(theonespeculatorinhistorythathadadirectlinetotheAlmighty),
fromMacbethtoEnglishshipsattheendofthe19thcentury,fromLehman
brothers to Ferraris, and from Talmudic scholars to antique map dealers.
Faust, Marx and Atlantis (the lost continent) also appear in a slew of
entertaining stories and philosophical musings which illustrate financial
concepts such as derivatives, contracts, uncertainty, taxes and ownership.
Josse has somestrong viewsbased onhismany yearsof experiencein the
market . . . You may not always agree, but will always be entertained,
informed and want to keep on reading.”
S.A. Ravid
Professor of Finance,
Sy Syms School of Business, New York
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DINOSAUR
DERIVATIVES
AND OTHER
TRADES
JEREMY JOSSE
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Thiseditionfirstpublished2015
2015JeremyJosse
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To Muriel
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CONTENTS
About the Author ix
Acknowledgments xi
Introduction xiii
1 What is Value? Dinosaur Derivatives 1
2 What is Uncertainty? Joseph’s Dreams 17
3 What is a Contract? 2,4,6,8 . . . 31
4 What is a Financial Instrument? A Legal Fiction 45
5 What is Financial Innovation? Railroads and the Credit Crisis 59
6 What is Ownership? Faust 75
7 What is Money? Cyber Cash 89
8 What is Taxation? Better than Theft 109
9 What is Fraud? When We Meet the Bad 121
10 What is Regulation? Antique Maps 141
11 What is a Bankrupt? A Financial Institution 157
Epilogue 175
End Notes 183
Index 191
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