Description
Book SynopsisTable of ContentsIntroduction 1
Chapter 1 No One Sells Miracles 5
Goats as Viagra? 7
Radio 9
The Placebo Effect 10
Correlation Does Not Imply Causation 11
Same as It Ever Was 13
Chapter 2 How to Sell Anything 17
The Count 18
Selling the Eiffel Tower 20
Everyone is in Sales 22
Chapter 3 Fast Money 27
The Promise of Huge Returns with Minimal Effort 29
When Trust Goes too Far 32
Do Your Homework 33
Chapter 4 It’s the End of the World as We Know It 39
Cognitive Dissonance 41
The Man Who Walked on Water 43
No One Knows What’s Going to Happen 45
Why Pessimism Sells Better than Optimism 47
The Value of ‘I Don’t Know’ 48
Chapter 5 Sleight of Hand 51
Bad Brad 53
A Magician Reveals His Secrets 56
Chapter 6 When Success Doesn’t Translate 61
Defeated by Decency 62
Don’t Try to Get Rich Twice 66
Chapter 7 When Fraud Flourishes 71
When There’s an ‘Expert’ with a Good Story 71
When Greed is Abundant 73
When Capital Becomes Blind 74
When the Banking Industry Gets Involved 76
When Individuals Begin Taking Their Cues from the Crowd 77
When Markets are Rocking 79
When the Opportunity Presents Itself 80
When Human Beings are Involved 81
When Innovation Runs Rampant 82
Chapter 8 The Siren Song of New Technologies 85
The Railway Napoleon 87
The Media’s Role in a Bubble 90
The Other Side 93
The Silver Lining of a Market Crash 94
Chapter 9 The Seductive Power of FOMO 97
How to Create a Monopoly 98
The Roaring 20s 100
When the Tide Goes Out 102
Not a Ponzi but Close Enough 103
The Seductive Power of FOMO 104
Chapter 10 Type I Charlatan 109
John Law and the Mississippi Company 111
Speculation is a Hell of a Drug 113
Pop Goes the Bubble 115
Type I and Type II Charlatans 116
Chapter 11 Type II Charlatan 121
The South Sea Company 123
Type II Charlatan John Blunt 124
The Bubble Act 127
The Echo Bubble and Dunbar’s Number 128
Chapter 12 Fooled by Intelligence 131
Newton’s Mania 134
The Problem with Smartest People in the Room 135
Why Smart People Make Dumb Decisions 137
Fooling Yourself with Complexity 138
Chapter 13 How Gullible are You? 141
Ponzi versus Bernie 146
The Sacred Relationship 148
Chapter 14 The Easiest Person to Fool 153
Getting Rich versus Staying Rich 156
Shot out of a Cannon 157
The Biggest Fraud of All 158
Conclusion: Six Signs of Financial Fraud 163
1. The Money Manager Has Custody of Your Assets 163
2. There is an Aura of Exclusivity in the Pitch 164
3. When the Strategy is too Complicated to Understand 165
4. When the Story is too Good to Be True 166
5. When the Returns are Ridiculously Good 167
6. When They Tell You Exactly What You Want to Hear 168
Index 171
