GO SEE THE BIG SHORT!
So you’re Michael Burry who gets his hair cut at Supercuts and doesn’t wear shoes and you know more than Alan Greenspan?
Michael Burry: Yes.
I Saw the Crisis Coming (Michael Burry vs. Alan Greenspan)
A lesson on the MBS crisis
Peter Schiff howling about the coming housing bust:https://youtu.be/Z0YTY5TWtmU
and see the results: aerial-photos
The movie provides a case study in belief in authority and incentive-based bias. See how many more biases you can pick out:https://en.wikipedia.org/wiki/List_of_cognitive_biases
The movie can’t cover all the reasons behind the housing/debt crisis, but you will get a sense of what great investors have to go through when they take amassively contrarian position. Note that Michael Burry started becoming worried about housing in 2003. Why? He asked himself the simple question: How come real estate prices are RISING or NOT going down in Silicon Valley during the biggest tech bust in history during 2001/2002?
More on Burry
BURRY_Scion_2006_4Q_RMBS_CDS_Primer_and_FAQ
BURRY_The_Crisis_By_Alan_Greenspan-3-9-10
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I remember being in the president’s office at Merrill Lynch in 1999 to see about selling www.art.com and the president pointed out through the glass partition to his trading floor and said see my risk team? They are the best in the business!