They and the other independents are stunned to discover that virtually no one on Wall Street thinks there is any danger. A new team of investors, Cornwall Capital, joins the hunt and searches for opportunities in the increasingly perilous market. The investment teams expect that many of these bonds will become worthless. Chief among their tools is the credit default swap, a type of insurance that pays off only if the bond it protects goes bad. The independents begin to make bets against subprime bonds. It becomes clear that the banks that sell these bonds don’t fully understand what they’re pushing. They learn that bad mortgages are being bundled into bonds that somehow receive the highest rating. In Chapters 4 to 7, the independent investors dig deeper into the mysteries of subprime bonds and their hidden pitfalls. It dawns on each of them that the much-touted bond market is likely to crash. The Big Short chronicles this story and the efforts of a small number of investors who realize a catastrophe is brewing and try to profit from it.Ĭhapters 1 through 3 introduce the independent investors who discover the flaw in the subprime mortgage bond market: Steve Eisman, who turns his anger at bond traders’ dishonesty into a crusade Michael Burry, an autistic medical doctor with a penchant for financial research and original thinking and Greg Lippman, a bond trader who learns of the danger from Burry and urges investors to get rid of their subprime bonds. When the bonds fail, hundreds of billions of dollars in securities become worthless, toppling major investment banks and forcing the government to step in to save the economy from collapse. These bonds become increasingly risky, but the danger is hidden from investors so cleverly that it fools even the banks that sell them.

At the center of the storm are subprime mortgage bonds, securities that package lower-quality home loans as investments.

Urn:oclc:871535165 Republisher_date 20120429130800 Republisher_operator Scandate 20120425050935 Scanner crash results from years of financial malfeasance and incompetence among the top salesmen and executives at the largest Wall Street banks. Urn:lcp:10000dresses00ewer:epub:c024ed15-5a00-4ba2-8a81-411dcb950d68 Extramarc University of Illinois Urbana-Champaign (PZ) Foldoutcount 0 Identifier 10000dresses00ewer Identifier-ark ark:/13960/t9960nt4p Isbn 9781583228500ġ583228500 Lccn 2008020025 Ocr tesseract 4.1.1 Ocr_detected_lang en Ocr_detected_lang_conf 1.0000 Ocr_detected_script Arabic Ocr_module_version 0.0.4 Ocr_parameters -l eng Openlibrary OL16957776M Openlibrary_edition

Access-restricted-item true Addeddate 15:41:12 Boxid IA179301 Camera Canon EOS 5D Mark II City New York Donorįriendsofthesanfranciscopubliclibrary Edition 1st ed.

The big short book