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Chaos Kings: How Wall Street Traders Make Billions in the New Age of Crisis Kindle Edition
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Written by a veteran Wall Street Journal reporter, this is a fascinating deep dive into the world of billion-dollar traders and high-stakes crisis predictors who strive to turn extreme events into financial windfalls.
There’s no doubt that our world has gotten more extreme. Pandemics, climate change, superpower rivalries, cyberattacks, political radicalization—virtually, everywhere we look there is mayhem bearing down on us, putting trillions of assets at risk.
And at least two factions have formed around how to respond. In Chaos Kings, Scott Patterson depicts how one faction, led by Nassim Nicholas Taleb, bestselling author of The Black Swan, believes humans can never see the big disaster coming. In their view, extreme events—so-called Black Swans—while inevitable, will always catch us by surprise. In 2007, Taleb’s longtime collaborator, Mark Spitznagel, launched the Universa hedge fund, which would go on to make billions protecting investors against unforeseen chaos in the market.
A second faction, which relies on complex formulas, believes looming chaos can be detected. Chief among these risk prognosticators is Didier Sornette, a colorful French mathematician who enjoys riding his motorcycle at speeds in excess of 170 miles per hour. When Sornette looks out from what he calls his Financial Crisis Observatory in Zurich, Switzerland, what he sees are Dragon Kings—punishing events that are unlikely to occur but have probabilities that can be predicted…and defended against.
Which faction is right? All of our financial futures may depend on the answer.
- LanguageEnglish
- PublisherScribner
- Publication dateJune 6, 2023
- File size3629 KB
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Editorial Reviews
Review
“In Chaos Kings, the indefatigable Scott Patterson has done it again: delivered a riveting account of Wall Street mavericks whose unconventional understanding of risk has netted them a fortune and us a fascinating account of how they did it. The unlikely partnership between Mark Spitznagel and Nassim Taleb has made them rich, saved their clients from financial calamity and, under Patterson's deft pen, produced an epic page turner.”
—William D. Cohan, New York Times bestselling author of Power Failure, Money and Power, and House of Cards
“A closely observed chronicle of the storm-chasing edgelords of finance and the critics with whom they clash…Even those unfamiliar with, or uninterested in, the oscillations of the stock market may find themselves gripped by Patterson’s account.”
—The New York Times
“Wall Street Journal stalwart Patterson continues his explorations of high finance with a clutch of contrarian risk takers...Deft, accessible analysis and guidance.”
—Kirkus Reviews (starred review)
“An illuminating investigation…The author has a knack for translating complicated financial maneuvers into easily comprehensible terms…Detailed yet accessible, this will appeal to fans of Michael Lewis’s The Big Short.”
—Publishers Weekly
“Scott Patterson's Chaos Kings is an extraordinary exploration of cutting-edge efforts to understand the manifold and interconnected risks slamming civilization at an alarming rate. It's a critical read for anyone with an interest in what's coming next and how to prepare for it, financially and otherwise. Scott has an uncanny knack for diving into the fascinating convergence of technology and investing, so I'm always excited to see what he's discovering.”
—Bradley Hope, New York Times bestselling co-author of Billion Dollar Whale and co-founder of Project Brazen
“Financial markets covet stability; they don’t like surprises. In our new age of crisis, Scott Patterson convincingly recounts how a unique type of trader has learned to embrace the disruptions and make a lot of money doing so. Combining risk theory, finance, and portraits of some of the most interesting billionaires of doom, Patterson takes us on a disturbing tour of what could come tumbling down. But he also provides a detailed road map showing average citizens how to steer past catastrophe. You’ll be left wondering whether these Chaos Kings are brilliant, opportunistic, visionary, or even loathsome. In Patterson’s lively account, you’ll definitely find them fascinating.”
—Juliette Kayyem, former Assistant Secretary of the Department of Homeland Security, and author of The Devil Never Sleeps: Learning to Live in an Age of Disasters
“We live in a world of pandemics, climate change, war, and unstable institutions. Scott Patterson’s fascinating Chaos Kings is a provocative look at those placing big bets who believe they have tamed the financial risk whipped up by these unruly beasts. It holds perceptive insights for anyone who lives—or invests—in our modern uncertain world.”
—Russell Gold, author of Superpower and The Boom
“Fast paced like a thriller but, also, thought-provoking in its willingness to show us the range of possible catastrophes, Chaos Kings tracks the adventures of contrarian investors who, rather than hide from chaos and confusion, seek it out. Their reward in many cases: a fortune. This book teems with great stories as well as market insights that you won’t get from conventional investors.”
—Aaron Brown, formerly, Chief Risk Manager at AQR Capital Management, and author of The Poker Face of Wall Street and Red-Blooded Risk
“The world is an increasingly unstable place, threatening to go off the rails at any time. This chaos is devastating to many, but a boon to a few who are cashing in on it. Read this engaging book to learn about who they are and how they do it.”
—Mark Zandi, chief economist of Moody’s Analytics and author of Financial Shock and Paying the Price
“A richly reported work that features a fascinating ensemble of quirky characters. Important reading for anyone interested in risk-taking now—and in the future.”
—Anita Raghavan, author of The Billionaire’s Apprentice
About the Author
Review
"An extraordinary exploration of cutting-edge efforts to understand the manifold and interconnected risks slamming civilization at an alarming rate."
-- "Bradley Hope, New York Times bestselling co-author of Billion Dollar Whale" --This text refers to an alternate kindle_edition edition.Product details
- ASIN : B0BHTLBG1Q
- Publisher : Scribner (June 6, 2023)
- Publication date : June 6, 2023
- Language : English
- File size : 3629 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Sticky notes : On Kindle Scribe
- Print length : 335 pages
- Best Sellers Rank: #30,059 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
About the author

Scott Patterson is author of the New York Times best-selling book The Quants and Dark Pools and a staff reporter for The Wall Street Journal, where has written about hedge funds, high-speed trading, Warren Buffett, the global mining industry, the Jan. 6, 2021 investigation, and climate change. His work has also appeared in the New York Times, Rolling Stone and Mother Earth News. He has a masters of arts degree from James Madison University. He lives in Alexandria, Virginia.
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Top reviews
Top reviews from the United States
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As more covid facts come out the narrative of a good chunk of the book falls apart. Turns out it wasn't nearly as dangerous as the propaganda machine made it out to be. In fact it was the globally botched response and central bank herd mentality (along with western governments dumping trillions into their economies) that caused so much damage. The vaccines do cause myocarditis, blood clots, etc. The virus was/is dangerous if you were/are old or had comorbidities, but otherwise it wasn't the Spanish Flu, Ebola or the Plague.
Patterson confuses mathematical concepts as well, which is weird, given how much math there is in the book. He cites and doesn't refute Bill Ackman's belief that "because 2 or 3 out of every 100 people are dying from covid, that up to a million people could die from it in the US alone." No, actually, with an assumed 50% of Americans contracting it, you're actually closer to 5 million Americans dying, and the actual number is nowhere near that. Then there's the confusion of R nought and case fatality rate. Who cares if the R nought is astronomical, how many are dying? He suggests that a high R nought is similar to a high case fatality rate.
This book was great until it talked about things Patterson has no business talking about. When he sticks to markets, quants, options (to a point), it's a phenomenal read. When he gets political it just becomes annoying and you feel like you're being preached at. If you don't want to deal with that nonsense you can avoid chapters 3, 16, 20, 21, 22 and honestly after that I gave up and lost interest with about 30 pages left.
on the other hand, one insight i did gain from the book and its stories. Universa's strategy is simply not for everyone to follow. it takes not only very high IQ but also strong EQ. the book said even people with such strong EQ as Taleb found it hard to live with such strategies and quitted (he merely retains the title of Senior Scientific Advisor for marketing purpose and not involved in the day to day management of the fund).
as far as stories go, this book is an enjoyable read. the story of CALPER is particularly interesting/funny. it withdrew from Universa just before the moment it was supposed to make big money for the portfolio. and the responsible guy in CALPER was eventually fired because of that.
Top reviews from other countries
Thank you very much for this excellent book (once again).
And it made me re-open Mr Taleb books also. (of which I am a fan)...







