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Will Byrnes's Reviews > The Big Short: Inside the Doomsday Machine
The Big Short: Inside the Doomsday Machine
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Michael Lewis looks at a handful of people who saw what was happening in the US economy, tried to sound an alarm, but also used their knowledge to make barrels of cash.
If the tales told here, following the fiscal 9/11 that is Wall Street ethics, do not scare you away from investing with any Wall Street firm, I do not know what will. Lewis may single-handedly revive stuffing cash in mattresses as a savings option.
Michael Lewis - image from Boston’s WBUR - photo by Robin Lubbock
What becomes clear is that there is no substitute for doing the hard work of gathering and analyzing data. That, really, is what the people portrayed here did. And they were confident enough in their analysis that they used it to personal advantage. Not all are Gordon Gecko types, sociopathic greed machines. Some even tried to warn legislators and corporations at risk just how crazy the bubbling market had become. I suppose it should come as no shock that short-term gain, even if based on insanity, will always triumph long-term rationality if it means reducing the next quarter’s profits. Well, almost always.
One key is the willingness of ratings agencies, like Moody’s and S&P, to hold their noses and rate as triple-A offerings that should have been rated as triple-crap. As long as the ratings agencies are reliant on businesses which bring products to them to rate, it is difficult to see how meaningful change can be effected.
Lewis has produced a very interesting portrait not only of a group of super-bright analysts, but of Wall Street gone wild. The book offers insight into the details of how the mess was made possible. It is one of the best looks at the financial crisis I have seen. Maybe I should invest in a better mattress?
1/22/16 - Saw the film tonight, and it is fracking brilliant!
=============================EXTRA STUFF
Links to Lewis's personal and Facebook sites
Reviews of other books by the author
----- Boomerang
----- Moneyball
If the tales told here, following the fiscal 9/11 that is Wall Street ethics, do not scare you away from investing with any Wall Street firm, I do not know what will. Lewis may single-handedly revive stuffing cash in mattresses as a savings option.
Michael Lewis - image from Boston’s WBUR - photo by Robin Lubbock
What becomes clear is that there is no substitute for doing the hard work of gathering and analyzing data. That, really, is what the people portrayed here did. And they were confident enough in their analysis that they used it to personal advantage. Not all are Gordon Gecko types, sociopathic greed machines. Some even tried to warn legislators and corporations at risk just how crazy the bubbling market had become. I suppose it should come as no shock that short-term gain, even if based on insanity, will always triumph long-term rationality if it means reducing the next quarter’s profits. Well, almost always.
One key is the willingness of ratings agencies, like Moody’s and S&P, to hold their noses and rate as triple-A offerings that should have been rated as triple-crap. As long as the ratings agencies are reliant on businesses which bring products to them to rate, it is difficult to see how meaningful change can be effected.
Lewis has produced a very interesting portrait not only of a group of super-bright analysts, but of Wall Street gone wild. The book offers insight into the details of how the mess was made possible. It is one of the best looks at the financial crisis I have seen. Maybe I should invest in a better mattress?
1/22/16 - Saw the film tonight, and it is fracking brilliant!
=============================EXTRA STUFF
Links to Lewis's personal and Facebook sites
Reviews of other books by the author
----- Boomerang
----- Moneyball
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Reading Progress
Started Reading
May 1, 2010
–
Finished Reading
June 3, 2010
– Shelved
June 3, 2010
– Shelved as:
nonfiction
June 3, 2010
– Shelved as:
economics
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Lilo
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Jan 30, 2015 12:00AM
I don't think I'll read this book. I don't want to get gall bladder problems.
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Will wrote: "Or a heart condition"Or stomach ulcers.
Good review Will. Wall Street ethics - surely an oxymoron?
Yep, plenty of oxy, and plenty of morons
Vastly overpaid morons at that
At one time I might have asked what kind of interest your mattress pays, Will. But now with rates of essentially 0 everywhere, it doesn't much matter. :-)
It would be indiscrete to report on the interest my mattress generatesor
My mattress pays market rates
or
My mattress is a classic. The interest it generates is unimportant compared to the pleasure one receives from appreciating its inherent beauty.
Nice review, a good companion to this would be Flash Boys. Another one by Lewis highlighting how Wall St. is gaming the system, but with technology this time. He's got a good narrative style, which makes reading about this complicated financial stuff bearable.
FB is on my list. I hope to get to it this year
Since no one knows where I live, I already have a "home savings option" lol!
Terrific review! I don't know if I can handle it. Flash Boys gave me heartburn and headaches!
I posted too early - I was about to add that I haven't finished FB. I kept wanting to scream.
As always, a well-crafted and entertaining review that gets to the heart of the matter. I recently re-read this book in anticipation of the movie to be released in December. The book was even more enjoyable the second time around.
We no longer need an investment plan or a storing mattress. We turn most of what would be our savings into cat food for our (presently) 27 cats. They turn it into poop, and we use the remainder of what would be our savings to pay some hired help to clean the litter boxes (and floor) and remove the poop.Investment/savings problem solved.
I recommend everybody with some extra cash to do the same.
The processing of financial resources through felines is a major part of our investment portfolio as well. At least there is no deception involved.
Bull poop or cat poop, it's still ...........: well, you know! Sadly, no cat here so considering coffee can in back yard.
I have nothing to invest either. Funny how my money seems to go toward living and eating. No pets decreases my costs. This book has been recommended to me by others and I know it will make me angry. I worked for an investment firm in the 70s and my takeaway from the experience was that it's a (rich) boys' game. Emphasis on the game. There were some good people but more people with vastly diminished ethics. And this was long before the computers, etc allowed them to become so corrupt.
I can't wait to see the movie! I just saw the trailer to it! Great review Will!
Sue wrote: "I have nothing to invest either. Funny how my money seems to go toward living and eating. No pets decreases my costs. This book has been recommended to me by others and I know it will make me angry..."I believe that the corruption was always there. Now it is on steroids, and 1% control of government is greater than it has ever been, so big players are immune to prosecution. The gains in national productivity for the last forty years have gone entirely to the wealthy. Our national economy seems more a form of organized crime than a true free market
Jennifer wrote: "I can't wait to see the movie! I just saw the trailer to it! Great review Will!"Is the movie out yet, and if yes, has it the same title as the book?
I might allow an attack on my gall bladder for 2 hours but not for as long as it would take me to read the book.
It opens on December 23
Will wrote: "It opens on December 23"Thanks, Will. I am afraid it will be a while before it comes out as a DVD. Do you think it will be able to see it ON DEMAND? We have never tried this function.
Probably, but no idea when
Will wrote: "Probably, but no idea when"Thanks, Will.
Lilo, a rule of thumb for On Demand movies is they appear there on the day they are released as DVD's. That is not always true but does seem to be typical.
Lela wrote: "Lilo, a rule of thumb for On Demand movies is they appear there on the day they are released as DVD's. That is not always true but does seem to be typical."Thank you for the info, Lela. So it doesn't make any sense to check for a movie that has just recently come to the movie theaters.
Yes, that is generally true but there are exceptions. Sometimes movies less likely to do well in theaters are released on DVD at the same time they are originally released. Films that are basically documentaries or drama-docs often have that happen. So wouldn't hurt to look for this one just in case it's a double release.
Lela wrote: "Yes, that is generally true but there are exceptions. Sometimes movies less likely to do well in theaters are released on DVD at the same time they are originally released. Films that are basically..."Thank you so much again, Lela. I'll check to see if this book is a double release.
I plan to watch more movies in the future. Since I am unlikely to live long enough to read all the books on my TBR-list, I think I'll compromise on some and watch the movie instead of reading the book. It only takes 2 hours to watch a movie, whereas it takes considerably longer to read a book.
Thanks, Sabah. I am eager to see it too.
Lilo, you are very welcome. With all these amazing books to read and finite time to read them, compromises are necessary - including watching the movie instead!
Great review Will. I have to get hold of the book.
As good as the book is, the translation of the book to screen is nothing less than genius.
Saw the movie. Very sad and interesting. Great review of the book. In Iceland, they did prosecute the bankers and set up strict controls to prevent it from happening again.
Cheers for Iceland for doing that. Yet, somehow, we cannot manage it here. A testament to the corruption that pervades our nation.
Wish they'd do that in the uk too Lynne, sadly not though
Hades wrote: "Great review! you are probably well versed but for those who are not; a precursor to this was the documentary Inside Job 2010, focusing on the real villains, a well-researched background with a hos..."Thanks, Hades. Sorry I missed this one when you posted it. Will definitely check out the doc.
I just re-watched this movie again last weekend. Really good!
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Great review I’m reading “Business Adventures by John Brooks”it’s “light & easy” to me. The quote “to make barrels of cash” - great - business book with humor. The movie’s trailer looks good. Do you have a few author/titles you like? Thanks again.
