Michael Lewis takes a look at the 2008 financial crash from the perspective of a few people who saw it coming. It helps the reader understand the market concepts that led to the collapse. It was primarily related to the practice of subprime mortgage lending. The complex tangle of root cause is unraveled in this book. Boiled down, they include greed, ignorance, hubris, and skewed financial incentives.
This book is effective due to focusing on people involved. Along the way, financial concepts are explained. We learn about collateralized debt obligations (CDOs), credit default swaps, mortgage bond tranches, the role of credit ratings, etc. It also briefly touches on the aftermath and the bailout by the US government.
It loops backward and forward since it follows the people rather than a linear timeline so there is a bit of repetition. I am impressed by the author’s ability to build tension even though we already know the outcome. I found myself riveted to this account. It is definitely one of the best explanations of the crisis that I have read.
Michael Lewis takes a look at the 2008 financial crash from the perspective of a few people who saw it coming. It helps the reader understand the market concepts that led to the collapse. It was primarily related to the practice of subprime mortgage lending. The complex tangle of root cause is unraveled in this book. Boiled down, they include greed, ignorance, hubris, and skewed financial incentives.
This book is effective due to focusing on people involved. Along the way, financial concepts are explained. We learn about collateralized debt obligations (CDOs), credit default swaps, mortgage bond tranches, the role of credit ratings, etc. It also briefly touches on the aftermath and the bailout by the US government.
It loops backward and forward since it follows the people rather than a linear timeline so there is a bit of repetition. I am impressed by the author’s ability to build tension even though we already know the outcome. I found myself riveted to this account. It is definitely one of the best explanations of the crisis that I have read.