Proposes a general theory of how, why, and when stock markets crash. This book says that the underlying cause of the crash can be sought months and even years before the event. It offers a step-by-step analysis in physical and statistical modeling techniques and also includes some predictions.
Didier Sornette is Professor of Geophysics at the University of California, Los Angeles, and a research director at Centre National de la Recherche Scientifique, France. A specialist in the scientific prediction of catastrophes in a wide range of complex systems, he is the author of the textbook Critical Phenomena in Natural Sciences (Springer-Verlag) and has authored or coauthored more than 300 papers in international journals.