Wheels of Fortune: The History of Speculation from Scandal to Respectability [Hardcover]

Charles R. Geisst (Author)

Book Description

Publication Date: September 27, 2002

An intriguing history of the futures market and speculation
From Jay Gould's attempt to corner the gold market in the 1860s to the Hunt brothers' scandalous efforts to control the silver market in the 1980s, Wheels of Fortune traces the rich, colorful history of the futures market on its quest for respectability and profit. This comprehensive account shows readers why the markets have been grabbing headlines for over 100 years as both respectable economic institutions and hotbeds of gambling activity and scandal. Charles Geisst brings the personalities and strategies behind the futures market and speculation in general to life, against a backdrop of American life that begins prior to the Civil War.

Editorial Reviews

Review

Futures trading has always represented the best and worst sides of the economy. On the one hand, it is the epitome of commercial progress: Property rights have become so secure and technology so advanced that traders can confidently risk huge sums on small changes in commodity prices. The hedge against risk these creative traders provide allows companies to fine-tune their own products in ways that maximize the benefits to consumers.
On the other hand, traders face extraordinary temptations to manipulate their markets, because what they buy and sell is information, far removed from the products it represents and yet easily converted into real cash. The result, as charted in this detailed but nonanalytical history, has been an ongoing seesaw between self-regulation and government intervention. The maturing economy has tamed the "cowboy" proclivities of traders a bit; still, corrupt traders now have the potential to disrupt the broad economy in ways undreamed of in earlier decades. The entrepreneurial drama continues. (Harvard Business Review, December 2002)

From the Inside Flap

For over 150 years, speculation in the financial markets, especially the futures markets, has contributed to both celebrated and infamous moments in this country's financial history-from Benjamin Hutchinson's corner of wheat in the 1860s to the Hunt brothers' cunning efforts to control the silver market in the 1980s. But from the very beginning, even after the economic value of futures was confirmed, the men who traded them and their motives have constantly been questioned.

Wheels of Fortune is an engaging and original story that traces the rich, colorful, and often scandalous history of the U.S. futures market in its quest for respectability and profit. Set against a backdrop that begins prior to the Civil War and continues through the twentieth century, renowned business historian and bestselling author Charles Geisst takes you on an incredible journey that brings the personalities and strategies behind the futures markets and speculation in general to life.

You will discover how daring nineteenth-century traders such as "Old Hutch," P. D. Armour, and Jay Gould set the standard for speculation with their bold attempts to corner the wheat and gold markets, and watch as other inspired individuals, companies, and even foreign governments quickly entered this arena during the twentieth century-as fundamental commodities in society would eventually be measured in basis points, not bushels. But this is only the beginning. Wheels of Fortune swiftly moves through the decades to recount the uphill battles these markets have faced, from political pressures mounted by the Sons of the Wild Jackass, legal rulings handed down by the Supreme Court, and FBI sting operations to fiascoes such as the salad oil swindle, Ferruzzi Finanziera, Orange County (California), and Long-Term Capital Management.

The history of the futures markets, derivatives, and speculation is full of misunderstandings and false assumptions. Wheels of Fortune seeks to clarify these misconceptions by capturing the spirit of these markets from their earliest days, chronicling the events and individuals that brought scandal and skepticism into the markets, and exploring the laws and governing bodies that were established to rein them in. This lively account offers an accurate picture of how the futures and derivatives game has been played over the years and tries to answer the question: "For whom are the futures markets dealing-the public or themselves?" Ultimately, the decision is yours.

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Product Details

• Hardcover: 352 pages
• Publisher: Wiley; 1 edition (September 27, 2002)
• Language: English
• ISBN-10: 0471212229
• ISBN-13: 978-0471212225
• Product Dimensions: 9.3 x 6.3 x 1.3 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #1,969,326 in Books (See Top 100 in Books)

More About the Author

Charles R. Geisst has written eighteen books on finance and economics, which have been translated into eight languages. His books have been on the Wall Street Journal, BusinessWeek, and New York Times best-seller lists. Geisst is a frequent guest on radio and television talk shows, where he is valued for his opinions on finance and business. He holds the Ambassador Charles A. Gargano Chair in Global Economics at Manhattan College.

Customer Reviews

Most Helpful Customer Reviews

9 of 9 people found the following review helpful:

5.0 out of 5 stars Thorough and Entertaining, October 30, 2002

By A Customer

This review is from: Wheels of Fortune: The History of Speculation from Scandal to Respectability (Hardcover)

This book is a history of the futures and derivatives markets from the 1850s to the present. It painstakingly traces the history of the markets as they developed in Chicago and later in New York. What I liked was that the author mixed a good amount of the institutional history with stories about trading scandals to keep the reader interested and entertained. The markets showed that they were always two-faced -- dealing with the public and also for themselves. They got more mature after futures and options were introduced in the 1970's but were still seeing scandal until the late 1990s when the narrative ends. The book also discusses the battle between the markets and the government along the way and it is an interesting part of the story. Makes you wonder whether Enron would have happened if there had been stronger regulators in place. A highly recommended book since it is the first history that I know of that covers this material. Seems a vital part of American history that has been overlooked until now.

5 of 5 people found the following review helpful:

5.0 out of 5 stars Whale of a Good Story, February 10, 2003

By A Customer

This review is from: Wheels of Fortune: The History of Speculation from Scandal to Respectability (Hardcover)

Several members of my family are futures traders and this book captures the business perfectly. Also a good history, beginning before the Civil War and working its way toward the downfall of Long Term Capital Management. The author does a good job of mixing history, the markets and some great anecdotes together so you never get bored reading it. Valuable piece of history and worth the price.