A Demon of Our Own Design

I am currently reading A Demon of Our Own Design, an eerily prescient look at markets, hedge funds and risk. The author, Rick Bookstaber, also has a very insightful blog. Given the recent turmoil in the markets, particularly within quantitative based funds, this post is worth a read. It puts in perspective the dire headlines we have been reading, as well gives a decent explanation to many of the problems that caused recent market disruptions.