The Big Short – Mike Lewis

One of the best writers of financial world presented a very clear picture of what goes inside the investment banks, focusing on the period just before the crash of 2007. A funny and complete story of how greed gave rise to the crisis and how fear of some people (Mike Burry, Jamie, Charlie and Eisman) helped them make a fortune from the greed of others. Big Short is about the mortgage business of 2005 – 2006 and Mike explains very well the inner complex functioning of exotic derivatives.

Reader will find how anyone by just being in some kind of business related to mortgage industry, no matter how remotely that business was associated with mortgage business, was making staggering amounts of money; how a stripper, strawberry picker or a nurse was given money to buy up to five homes without even asking their annual income.

Mike targets the rating agencies as according to him they had no idea of what they were doing and were asking investment banks to explain to them how to rate the securities investment banks were producing. So, it was like Goldman telling Moody’s what rating Goldman’s CDO deserved.

Mike connects all the stories in a great way and makes the book quick to read.


About Danish Kapur

Danish Kapur is a writer, commentator and actively follows the global financial markets.

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