The Big Short

Inside the Doomsday Machine

By: Michael Lewis

Narrated by: Jesse Boggs

Length: 9 hrs and 27 mins

Publisher's summary

Featuring an exclusive audio interview with Michael Lewis

When the crash of the U.S. stock market became public knowledge in the fall of 2008, it was already old news. The real crash, the silent crash, had taken place over the previous year, in bizarre feeder markets where the sun doesn’t shine, and the SEC doesn’t dare, or bother, to tread: the bond and real-estate derivative markets, where geeks invent impenetrable securities to profit from the misery of lower- and middle-class Americans who can’t pay their debts. The smart people who understood what was or might be happening were paralyzed by hope and fear; in any case, they weren’t talking.

The crucial question is this: Who understood the risk inherent in the assumption of ever-rising real-estate prices, a risk compounded daily by the creation of those arcane, artificial securities loosely based on piles of doubtful mortgages?

Michael Lewis turns the inquiry on its head to create a fresh, character-driven narrative brimming with indignation and dark humor, a fitting sequel to his number-one best-selling Liar’s Poker. "Who got it right?" he asks. Who saw the ever-rising real-estate market for the black hole it would become, and eventually made billions of dollars from that perception? And what qualities of character made those few persist when their peers and colleagues dismissed them as Chicken Littles?

Out of this handful of unlikely—really unlikely—heroes, Lewis fashions a story as compelling and unusual as any of his earlier best sellers, proving yet again that he is the finest and funniest chronicler of our times.

©2010 Michael Lewis (P)2010 Simon & Schuster

Critic reviews

“No one writes with more narrative panache about money and finance than Mr. Lewis....[he] does a nimble job of using his subjects’ stories to explicate the greed, idiocies and hypocrisies of a system notably lacking in grown-up supervision....Writing in faintly Tom Wolfe-ian prose, Mr. Lewis does a colorful job of introducing the lay reader to the Darwinian world of the bond market.” (Michiko Kakutani, The New York Times)

“Superb: Michael Lewis doing what he does best, illuminating the idiocy, madness and greed of modern finance. . . . Lewis achieves what I previously imagined impossible: He makes subprime sexy all over again.” (Andrew Leonard, Salon.com)

"[Michael Lewis] is the finest storyteller of our generation.” (Malcolm Gladwell)

Great book. Must read

Definitely a must-read book to understand what really caused the great crisis of 2007-2008 and to understand the fragility of the world financial system. One is astonished how the few crooks who caused this crisis were allowed to continue be free when they destroyed millions of private investors lives. The book highlights mainly the few people (around 10) who knew what was happening and predicted the catastrophic outcome and no one cared to believe them. On the contrary, they were despised by the industry.

Complex events humanized

A smart well told narrative of the financial debacle surrounding sub-prime mortgages. Even though the financial principles underpinning Lewis's work are incredibly complex, the characters allow the uninitiated reader a way into a dizzying series of events that led to the 2008 crisis. Lewis is incredible. He writes with confidence and candor displaying a keen understanding of both macro and microscopic forces at work. The characters ground the story and are fully realized.

Interesting read!

Would you consider the audio edition of The Big Short to be better than the print version?

NA

Who was your favorite character and why?

Michael Burry. I liked the concept that it took someone who was outside of the financial system to see the flaws.

What does Jesse Boggs bring to the story that you wouldn’t experience if you just read the book?

N/A

What’s the most interesting tidbit you’ve picked up from this book?

That the financial system doesn't not understand itself as well as it would like to think

Any additional comments?

Great book for someone interested in finance but does not have an extensive background in finance.

A tough job, but he pulled it off

A few years ago, when I opened up The Great American Novel by Philip Roth, I thought I wasn't going to last long with the book because it was about baseball, and to quote an old friend, "I'd rather watch ice cream melting on a hot sidewalk than watch baseball" (or read about it). It just proves how good Roth was that he got my attention and held it all the way through. He made a story about baseball interesting to me, and now Michael Lewis has actually made the subprime mortgage crisis interesting to me. The story he tells here is illuminating and dramatic, with a cast of colorful and sometimes unlikely characters in pivotal roles. Jesse Boggs does a wonderful job reading this story, which turns big finance into big drama.

Although the housing collapse and financial crisis severely affected many people, it's just the kind of thing that would ordinarily be pretty darn boring to read about, especially when you get down to the nitty-gritty of CDOs and credit default swaps. I will say that in just a couple of places things dragged on a bit too far in terms of detail or repetition, but this was a minor problem and I can't take away any stars for it. Michael Lewis is my Philip Roth of financial nonfiction.

Fascinating

Where does The Big Short rank among all the audiobooks you’ve listened to so far?

Oh, I've only listened to three books so far, so it's definitely among the top three

Which character – as performed by Jesse Boggs – was your favorite?

Eisman. I would love to get the chance to meet the pre-financial meltdown Eisman who said what he wanted when he wanted to whomever he wanted and was usually vindicated in doing so because he was right and everyone knew it.

Any additional comments?

Great book. I don't think that the language is too technical for someone not in financial services or investment banking. The specifics can't be understood by anyone, so listeners shouldn't worry about not understanding them either.
This book gives good insight into what was going on right under our noses, but mostly without our knowledge and makes you angry at what people will do to make money at your expense. If nothing else, it will give investors a reason to ask questions the next time they sit with a Financial Advisor, or Stock Broker, or Retirement Planner, etc...

unbelievable!

this is a play by play profile of major position holders as they forecast and approached the financial crisis. Awesome history!

Thank God for michael Lewis

If you could sum up The Big Short in three words, what would they be?

Oblivious Financiers Parade

What did you like best about this story?

This book is a great look inside some of the many stories coming out of the financial meltdown. Michael focuses on the CDO's and CMO's and SWAPS markets and really allows any reader to read between the lines while demonstrating the complete ignorance of our financial leaders. He also points out a few superstars among the rotting feeding frenzy but, prevails that our system while obviously broken has not changed policy whatsoever!

What about Jesse Boggs’s performance did you like?

Great! No complaints!

If you were to make a film of this book, what would be the tag line be?

How our financial leaders are falling asleep at the wheel!

Educational and Entertaining

This story is one of a generation. Between the narration and Lewis's character story telling I am continually enlightened by this audiobook. I just finished listening to it for the third time, and each time I enjoy the listen.

An education in finding value

very F'n educational, Now I feel the Bern! My neighborhood went to crap, seemed like every other home on my block was being foreclosed on. I was suddenly upside in my home mortgage loan. I tried loan re-organazation, denied. interest rate went up to 18%. I stopped making the payments and saving the money. Sold the house short at 65,000 loss. Paid cash for my current home, but my credit score is crap now.
THIS BOOK EXPLAINS HOW IT CAME TO BE

Amazing

Incredible story that really intrigues you. Very informative. Not really for someone who doesn't have previous interest and understanding in the financial markets.