David Orrell

David Orrell. Writer and Mathematician

The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets

The Money Formula

The Money Formula (China)


With Paul Wilmott

Publishers: Wiley (World English), Audible Studios (audio), China Machine Press (China), Mpirika Press (Thailand)

Explore the deadly elegance of finance's hidden powerhouse

The Money Formula takes you inside the engine room of the global economy to explore the little-understood world of quantitative finance, and show how the future of our economy rests on the backs of this all-but-impenetrable industry. Written not from a post-crisis perspective - but from a preventative point of view - this book traces the development of financial derivatives from bonds to credit default swaps, and shows how mathematical formulas went beyond pricing to expand their use to the point where they dwarfed the real economy. You'll learn how the deadly allure of their ice-cold beauty has misled generations of economists and investors, and how continued reliance on these formulas can either assist future economic development, or send the global economy into the financial equivalent of a cardiac arrest.

“This book has humor, attitude, clarity, science and common sense; it pulls no punches and takes no prisoners.” Nassim Nicholas Taleb, scholar and former trader

“There are lots of people who'd prefer you didn't read this book: financial advisors, pension fund managers, regulators and more than a few politicians. That's because it makes plain their complicity in a trillion dollar scam that nearly destroyed the global financial system. Insiders Wilmott and Orrell explain how it was done, how to stop it happening again - and why those with the power to act are so reluctant to wield it.” Robert Matthews, author of Chancing It: the laws of chance and how they can work for you

“Few contemporary developments are more important - and more terrifying - than the increasing power of the financial system in the global economy. This book makes it clear that this system is operated either by people who don't know what they are doing or who are so greed-stricken that they don't care. Risk is at dangerous levels. Can this be fixed? It can and this book - full of healthy scepticism and high expertise - shows how.” Bryan Appleyard, author and Sunday Times writer

“In a financial word that relies more and more on models that fewer and fewer people understand, this is an essential, deeply insightful as well as entertaining read.” Joris Luyendijk, author of Swimming With Sharks: My Journey Into the World of the Bankers

“A fresh and lively explanation of modern quantitative finance, its perils and what we might do to protect against a repeat of disasters like 2008-09. This insightful, important and original critique of the financial system is also fun to read.” Edward O. Thorp, author of A Man For All Markets and the New York Times best seller, Beat the Dealer

“Entertaining and insightful ... a great description of what has happened, a thorough explanation of what is currently going on, and a solid argument for what should be done in the future.” Significance magazine, Royal Statistical Society

“Irreverent and fun, it is at the same time very rigorous in explaining how some fairly basic mathematics has hijacked the world of finance - and with it, possibly, your prosperity.” MarketMoving

“Instructive and engagingly written.” FTAdviser

“VIVISXN loves this book because the topical range is really relevant, expertly systematized and replete with reason and foresight on risk frameworks and modelling ... Read it!” VIVISXN

“Anyone interested in investment theory (and that should be everyone working in financial services) would find it worth reading.” International Investment

“A clear vision of financial world modeling.” Talouselämä (Finnish)


Paul Wilmott on GoldSeek Radio

David Orrell on Informed Choice Radio 24