I should have read, The Big Short: Inside the Doomsday Machine, by Micheal Lewis years ago. Especially, when I was still at my first full-time job in a Fixed Income group of a local mutual fund company during the Great Recession. I remember a lot of the events and the moment everyone realized that nobody had a good understanding about what the risk was these securities. There were a few investors who would end up getting wildly rich out of betting against a market, everyone was told would never default, and the money making securitization industry that got completely out of control.
If you want to laugh, learn, and get really upset about Wall Street, Rating Agencies (Moody’s, S&P, & Fitch), SEC, and pretty everyone else involved in the financial markets than this book is for you. It’s an excellent twenty year followup to Micheal Lewis’s classic, Liar’s Poker. He thought Wall Street, particularly the MBS market, was dead after his book came out in 80s. Little did he know, the 80s, would end up being small potatoes to what was going to take place in the middle of the first decade of the new millennium. It would cause a recession the world financial markets are still trying to correct.
Great read. Interesting characters. Go read this book, and then watch Adam McKay’s movie, The Big Short, which was nominated for an Academy Award. Both the book, and the movie, do an excellent job explaining very technical financial terms and how they almost destroyed the global financial system.