Author Lewis Says Wall Street Is `Making America Worse'

March 16 (Bloomberg) -- Michael Lewis, author of "Liars'
Poker," talks with Bloomberg's Erik Schatzker about the subprime mortgage crisis and his new book "The Big Short."
The book is a chronicle of four sets of players in the
subprime mortgage market who had the foresight and gumption to short the riskiest mortgage deals: Steve Eisman of FrontPoint, Greg Lippmann at Deutsche Bank, three partners at Cornwall Capital, and Michael Burry of Scion Capital. (Source Bloomberg)

[@MegF142857]

So glad this book is now made a good movie with big stars to help remind and explain to people how we were fleeced by the financial systems and our government. One of the more candid interviews from that time that I've seen. Definitely worth listening to this interview. This interview should have a million views. Where is the outrage!?

[@teecarter4900]

Buying sneakers and guns. As long as we benefit it's hard to get excited for someone else's plight. Even if it's our future self.

[@goddardpk]

Lewis is delight to listen to. Thanks for keeping this online!

[@SirRed5000]

I got an ad for Goldman Sachs on this video LOL

[@RONMAYS71]

Social obligation , we should feel that every one matters and deserves to be treated fairly

[@vinestreet4031]

Michael Lewis is in a class of his own.

[@StuartLoria]

This man is into challenging systems

[@dlbdlb3919]

This man is into fame ,

[@SS-pl2ws]

He’s brilliant

[@goldeneastgun]

Exactly right. Now is 2021 and the manifestation of Michael Lewis is saying are the Trump years. And it's still not over...

[@StellarFella]

Greed attained anonymity under the cover of many layers of complexity.

[@diamondgeezertunes]

Hoffman.. what a great actor .. shame his life ended so short

[@arthurwatts1680]

The beauty of hindsight is that its 20:20, but how many of us didnt know that there were people at the big end of town who have absolutely no interest in the impact of their activities on the real world. Their world is a penthouse in Manhattan, and that's all that matters - who cares if people in Buffalo or Sydney or Durban lose their homes and their livelihoods ? Obama had the opportunity to read the Wall St bankers the riot act - he gave them a slap on the wrist and sent them on their merry way, and we'll all pay the price for that.

[@teecarter4900]

Indeed.

[@KrisKehasukjaren88]

The interviewer looking like he's going to use this information for evil later haha

[@kiklocus4660]

I like the music

[@willenholly]

The Black-Scholes option pricing model came out of the Bernoulli equation, which works for how ice melts but It makes no sense for options. But it works just fine like fiat currency does. We all need to agree to it. Every now and then though, we mis-price risk. Hopefully no one with access to nuclear codes gets screwed.

[@aladdinkayqubad1645]

Yeah Fluid mechanics has had a big impact on Financial Mathematics. But I think it's also an extension of Thorp and Bachelier's work!

[@KNByam]

Synthetic CDOs is a derivative of the idea of packaging debt and selling it to another bank in order to free up capital to lend more, being that at that time interests rates were so low. Problem being, as with most things in business, another smart guy comes along and uses a good idea to make lots of money in the short term knowing they will leave a trail of fire down the road.

[@ge-8135]

They didn't see it coming. That's why it is a horror show. No boogeyman to blame.

[@jamespeterson4301]

Well, these short sellers knew, because they had looked, (a) mortgage bonds were stuffed with crappy loans that likely would not be repaid and, the more recent the bonds, the crappier their content; and (b) The variable rate loans with teaser rates would become very much more expensive by 1Q 2007. They were structured that way. They then investigated particular markets, like Florida, Southern California, and Las Vegas, and found the markets already cracking. Going short with this information was a very good bet. (Much better than trying to guess when the rain would fall).

[@robertmitchell8630]

James Peterson in a nutshell a mechanic knows your brakes are shot fails to tell you then goes out and takes out insurance cds basically buying insurance on an assets you don't own sec didn't regulate cds as insurance @ 19.00 per video

[@banjoist123]

My sister is a retired broker. She approved NINJA loans (no income no job no assets). She knows people who are serving time now.

[@koendevriendt6120]

people speculate and invest on their expectations, that is investing! Belgium

[@unnf9971]

When was this interview aired?

[@ITILII]

The people at Goldman Sachs who designed the evil stuff, gives us a NAME....we need a NAME !

[@rRobertSmith]

+ITILII pretty easy to look up, you have google don't you?

[@CHURCHISAWESUM]

Many many people touched these things. The point at which they became completely toxic rather than just a mortgage bond is debatable. Personally I'd say the synthetic CDO was really the most egregiously evil evolution of this. Wing Chau at Harding Advisors was a big part of the synthetic CDO apparatus. He did Merrill Lynch's CDOs and Merrill's were undeniably the most toxic.

[@davidwilkie9551]

"There's nothing illegal about what they do..", no, because they own the legal system and the weapons to enforce it.., purely artificial value, Rules of Decree.

[@moviedude22]

I still don't grasp any of it. And that's upsetting to me

[@banjoist123]

I agree. credit default swaps, trenches, collateralized debt obligations. Ive read the book twice, and saw the movie. That's part of the problem that he highlights. These things were made purposefully oblique so that investors wouldn't understand them.

[@Soaringhawkvintage]

I loved Steve Carrell in this film, but wow... if Philip Seymour Hoffman would have had an opportunity... ALL the top Oscars would have been a lock.

[@findkip]

the "market" is a business in and of itself and it makes and does nothing.

[@hansvetter8653]

It was legal to insure unique credit contracts multiple times ... ! ...

[@jupena]

Still is.

[@hansvetter8653]

@@jupena ... that was the decisive factor killing Lehmann Brothers ...

[@santim270]

Man im glad he didn't get his way with the casting, even if i would give anything for hoffman to still be alive.

[@scottab140]

Michael Burry of Scion Capital be Matt Damon. :)

[@rock3tcatU233]

Wall Street really is a waste of talent.

[@reedschrichte800]

The right answer at the wrong time is wrong. The only thing that made these particular short sellers "right", in financial terms, was the timing, which was something totally beyond their control, as well as beyond their vision or ability to predict WHEN the collapse would take place.. How is that any different from taking credit for the rainfall? "The market can remain irrational longer than you can remain solvent" J.M. Keynes

[@reedschrichte800]

Yes I saw it, thanks. I'm baffled as to why he was so ambiguous when he was talking about the responsible parties? It would have been easy to name names.

[@SEAL341]

+Reed Schrichte Well Michael Burry seemed to make the right call based on the maths and a thorough understanding of the rules of the market in question. So what's your problem?

[@reedschrichte800]

+SEAL 341 It's not my 'problem', it's an observation: he was right because the timing was right, and he could not possibly control the timing. How many people made the same bet, but the market did not turn in the time frame they had picked (too soon? too late?) Did Mr. Burry's maths and his thorough understanding reveal the timing? Perhaps it did, that would certianly be a most useful tool to have at one's disposal and I'd have to question why he has not made a bigger deal about, after all if you could prove that much accuracy in your predictive analysis then the world would be your oyster. Or is he a one-hit wonder?

[@SEAL341]

Well...he's a multi billionaire and I bet you're not. That's your problem.

[@reedschrichte800]

Why is that a problem? I'm sorry, but it appears that you missed my point. Kindly address the point, sir, otherwise spare us your amateurish attempts at psychology, because your effort to reduce the observation to my personal feelings of envy are an embarrassment.

[@koendevriendt6120]

this man is also rich! Belgium

[@debralegorreta1375]

Yeah, but he earned it.

[@Football__Junkie]

Why is the video quality to bad?

[@debralegorreta1375]

Video maker took one too many head bumps playing football. This is what the world look like to him.

[@denisespurlock]

Da!

[@debralegorreta1375]

The system is evil.

[@teecarter4900]

My Cover-up 19 research brought me here.

[@prism8289]

All the breaks in this interview are EXTREMELY annoying.

[@jupena]

KZbin red would solve that ($9.99/m)