The Big Short…Posted: April 13, 2010
If you would like to learn more about what really happened with the sub-prime mortgage crisis, pick up a copy of The Big Short by Michael Lewis. I started reading the book last week, and am just amazed at the lack of oversight, the greed and the incompetence displayed by these market insiders!
Basically, the book is about the few people who recognized there was a problem. Lenders were basically giving away money to people who were nowhere near qualified to receive it. These loans were then packaged into tidy securities and amazingly rated very high by the rating agencies. Nobody was looking behind the curtain to see what was really happening – it was too lucrative a business!
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