via Finance Trends
Michael Lewis Talks Big Short With C-Span
When it comes to finding future business champions, Warren Buffett and Charlie Munger have really excelled over the past seven decades. Q3 2021 hedge fund letters, conferences and more One could argue that these two individuals are some of the best growth investors of all time, thanks to their ability to spot companies like Coca-Cola Read More
Having recently seen the film version of The Big Short in the theater, I’ve been going back to some of the interviews and source materials from Lewis’ book. For those who don’t remember (or are too young to recall), Lewis’ book examines the real estate bubble and subprime mortgage debacle, which kick-started the 2007-2008 financial crisis and pushed our economy to the brink of collapse.
The book zeroes in on some of the investors and hedge funds that profited greatly from buying credit default swaps (CDS) on subprime bonds, and the banks who took the other side of that bet and crashed. A few years and a few trillion dollars in bailout money later, we’re into a major motion picture starring Christian Bale and Steve Carell as said hedge fund managers, but that’s a story for next time. Tune in next week for the story behind The Big Short.