Author: Michael Lewis
There were many times when this book appeared onmy radar, but each time I dismissed it saying "do I really need another look at the sub-prime meltdown?".
At the outset, it is important to note that this book is very different from the pack of books and articles that describe the macro-economic effects of the financial crisis that led to the collapse of several Wall Street institutions and wiped out many large investors and investment banks in the first decade of this millennium.
Michael charts out the few maverick investors who not only spotted the anomaly in the mortgage lending business way back at the turn of the century, but were confident enough in their belief that they put a substantial portion of their investments into short positions on mortage bonds and derivatives. These pioneers also had to invent new instruments and insurance to take these positions and the history and culmination of these investments is well described in the book.
Leading up to collapse there was a general herd mentality into the mortgage backed security business which provided the air that filled the balloon that was ultimately going to burst. While the book is well written and provides a balanced view of the handful of folks that made out like bandits in the crash, it doesn't do real justice to the inflation of the bubble. Specifically, leading up to collapse there was a general herd mentality into the mortgage backed security business and Michael provides a very limited insight into what fueled that. Nevertheless, Michael's writing style is really fluid and entertaining and before you know it, you will be done with the book and come out with a different perspective of the crash that rocked our world.
There were many times when this book appeared onmy radar, but each time I dismissed it saying "do I really need another look at the sub-prime meltdown?".
At the outset, it is important to note that this book is very different from the pack of books and articles that describe the macro-economic effects of the financial crisis that led to the collapse of several Wall Street institutions and wiped out many large investors and investment banks in the first decade of this millennium.
Michael charts out the few maverick investors who not only spotted the anomaly in the mortgage lending business way back at the turn of the century, but were confident enough in their belief that they put a substantial portion of their investments into short positions on mortage bonds and derivatives. These pioneers also had to invent new instruments and insurance to take these positions and the history and culmination of these investments is well described in the book.
Leading up to collapse there was a general herd mentality into the mortgage backed security business which provided the air that filled the balloon that was ultimately going to burst. While the book is well written and provides a balanced view of the handful of folks that made out like bandits in the crash, it doesn't do real justice to the inflation of the bubble. Specifically, leading up to collapse there was a general herd mentality into the mortgage backed security business and Michael provides a very limited insight into what fueled that. Nevertheless, Michael's writing style is really fluid and entertaining and before you know it, you will be done with the book and come out with a different perspective of the crash that rocked our world.
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