In the compelling narrative of 'Models.Behaving.Badly.,' Emanuel Derman navigates the intricate world where financial models collide with reality, shedding light on the profound implications of their failures. Derman, a former physicist turned financial engineer, draws from his vast experience to expose the dangerous reliance on models that attempt to quantify human behavior, revealing the chasm between the elegance of mathematical abstraction and the messiness of the real world. Through a blend of personal memoir, philosophical inquiry, and financial insight, Derman offers a fascinating exploration of why models allure and betray, urging a return to financial wisdom grounded in human experience rather than reliance on inherently flawed mathematical constructs. As Derman dissects the critical distinction between theories that perfectly describe the universe, like those in physics, and the models that fail to capture the unpredictability of the financial markets, he delivers a powerful critique of the hubris in financial modeling. 'Models.Behaving.Badly.' is not just a critique but a call to action, advocating for a more humble approach to financial engineering, one that recognizes the limits of our knowledge and the dangers of overconfidence. With its captivating blend of storytelling, insight, and wisdom, this book is an essential read for anyone intrigued by the intersection of finance, mathematics, and the complexities of human nature.