The Devil’s Derivatives: The Untold Story of the Slick Traders and Hapless Regulators Who Almost Blew Up Wall Street . . . and Are Ready to Do It Again – it follows Nicholas first book, and in this book he has a much better ability to articulate the significant of financial technology in lay terms.  For example, derivates are essentially loan mechanisms.  As new loan mechanisms, they initially competed with the old style of actuarial loans, e.g., mortgages, bonds, etc.  He also discusses LTCM in hind sight – that they were so big that they were the derivatives market.  Thus, there performance could not be derived from past historical data (since that data did not include their influence).  Moreover, as the market started to learn their techniques (become efficient), it actually started to guess LTCM’s moves and arbitrage them!