A Demon of Our Own Design
I just finished reading "A Demon of Our Own Design" by Richard Bookstaber. He is a person who has devised analysis and trading schemes for hedge funds and others. He gives us a look into that world and why things fall apart from time to time. He likens the events leading up to the 1987 market crash and the more recent failure of LTCM to what went wrong at Three Mile Island. I found it a very interesting book. Bottom line is that it really isn't possible to pass a law to keep it from happening again.
