Book Review: The Big Short by Michael Lewis
This book is a remarkable achievement. It is as gripping as a thriller, yet it manages to explain the financial innovation that triggered the 2007-8 financial crisis straightforward terms. It provides a lucid introduction to the world of sub-prime mortgages, asset backed securities and credit default swaps through the eyes of personalities who understood what was going on – and profited handsomely in consequence.
From Liar’s Poker on, Lewis has demonstrated the capacity to illuminate a complex issue with a telling observation that is the hallmark of the best non-fiction prose. This is the only book on the financial crisis that you can read on the beach or poolside. Whether you knew nothing about the industry or a great deal, you will find much of interest and much to learn.