Wednesday, April 30, 2025

Against the Gods

Peter Bernstein's "Remarkable Story of Risk" had been on the shelf for so long that it somehow migrated into bedtime reading.  While it was engaging and well written, I found I wasn't really the target audience for the book.  I was already familiar with all of the mathematics, and even many of the historical anecdotes, that he discusses in the first half of the book.  And just a routine tour of duty in finance makes the second half's discussion of risk management techniques a bit redundant.  In fact, I almost stopped reading after the eye-rolling-ly triumphant late 90's tone of the introduction; these days, that era's presumption that we had managed to design a foolproof self-correcting risk management system looks nothing short of amazingly naive.  However, I'm glad I pushed on despite my misgivings.  I ended up enjoying the way Bernstein unfolded his story and nuanced the neo-liberal tone he began with.  Ultimately, it's not a bad book to hand someone who has never reflected on the issue of what "risk" is, nor how our definition of this concept has shifted over time.  

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