![]() ![]() Michael Burry approached multiple banks to buy credit default swaps, or CDSs. In 2005, it occurred to a money manager to short mortgage bonds, which in effect means to bet against them being paid at the appropriate time. Due to the fact that mortgages are not always paid off when expected, the tranches would offer on the lowest level the earliest pay offs with a high interest, while the higher tranches were the ones that would mature when expected and had a low interest. To make these bonds easier to sell to investors, they were divided into what was called tranches, or different levels. A mortgage bond was a bond that included hundreds of mortgages that were offered to the American public. Part of this shift was the creation of the mortgage bond. With this shift came an interest in finding more diverse ways of investing and making money. In the 1980s a shift occurred on Wall Street that allowed young men to walk in off the street and become multi-millionaires by advising others how to invest. In this character driven narrative, Lewis examines the group of people who saw the crash coming and either kept quiet to protect potentially large investments or were too shocked to speak up. ![]() Lewis examines the bond market and the move into subprime mortgage bonds that led to the crash that actually took place over the long months in 2007 when the housing prices suddenly dropped nationwide. In this book, Lewis explores the stock market crash of 2008. ![]() The Big Short: Inside the Doomsday Machine by Michael Lewis is a return to Lewis' financial roots. ![]()
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