What’s a Little Didacticism in a Movie With Margot Robbie & Brad Pitt? Are collateralized debt obligations (“CDO’s”) easier to understand when a gorgeous Margot Robbie — enjoying a champagne bubble bath — explains them? (maybe, if you’re not too distracted). How about when the teacher is Selena Gomez or Chef Anthony Bourdain? That’s the...Read More
Punishing the Whistle Blowers “I saw the crisis coming; why didn’t The Federal Reserve?” –Dr. Michael Burry, 2012 UCLA Economics Dept. Commencement Address If you read Michael Lewis’ “The Big Short,” you doubtless remember Michael Burry: the brilliant, one-eyed medical doctor/investment savant with borderline Asperger’s who predicted — and cashed in on — the looming financial...Read More
Michael Lewis Was Right Today’s lead financial news story appears to be the just-released U.S. Senate report on the financial crisis (formal title of the 650-page report, “Wall Street and the Financial Crisis: Anatomy of a Financial Collapse”). Not much new news, at least as far as I can tell: the mind-boggling greed and skulduggery of...Read More
Voiding Credit Default Swaps In a book stuffed with scathing insights and blockbuster revelations, here’s perhaps the biggest one (courtesy of Michael Lewis, writing in The Big Short): The reason Citigroup (amongst others) is considered “Too Big Too Fail” isn’t because it holds over $1 trillion in ordinary Americans’ savings in their vaults. It’s not...Read More
“Ten Showings, $10,000” I hated discussing ideas with investors. Because I then become a Defender of the Idea, and that influences your thought process. Once you became an idea’s defender you had a hard time changing your mind about it.” –Author Michael Lewis, quoting investor and fund manager Michael Burry in The Big Short (p....Read More
