Financial collapse explained
With Christopher Dodd’s new financial rules to save Wall Street from autodigesting itself and the 60 Minutes interview with Michael Lewis, author of the new book, The Big Short, I thought I’d post some of his interview with 60 Minutes. This is very good. Please take your time and take in what this guy is saying.
From NPR:
Nearly the whole financial system bought into subprime mortgages and the securities that were backed by them — and amounted to bundles of bad debt.
In his new book, The Big Short, Michael Lewis writes about people who didn’t buy in. In fact, they bet against the colossal tower of debt that Wall Street built. They shorted it — and they profited from its eventual collapse.
For Lewis, The Big Short is his return to the scene of the crime. Twenty years ago, he wrote about his experience working as a young bond trader at Salomon Brothers. Liar’s Poker was an astonishing tale of kids fresh out of Ivy League schools making huge decisions about other people’s money with no qualifications for doing so.
By the time of the financial crisis, the generation he wrote about in Liar’s Poker was established Wall Streeters, typically up to their eyeballs in mortgage-backed securities.
Part 2 of his interview with 60 minutes is below:
-
margaret2
