The Nobel Bailout

Nat Dyer tells the story of how two Nobel Prize winners almost brought down the world’s financial markets by putting their “rocket science” finance theory into practice. Sounds like a fairy tale, but it was all too real for those left to clean up a trillion-dollar crash.

When Robert Merton and Myron Scholes won the Nobel Prize in Economics, they had no idea that less than a year later the hedge fund they had helped create would collapse and have to be bailed out to the tune of $3.6 billion. It could be a modern-day fairy story; a cautionary tale of greed, arrogance and the chasm between orthodox economic theories and the world outside the window.

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Nat Dyer

Nat is Programme Director for Promoting Economic Pluralism and a writer based in London. He was previously a campaigner with anti-corruption group, Global Witness. He tweets at @natjdyer

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